PSALM receives the purchase price & completes the sale of Malaya

25 Aug 2021

The Power Sector Assets and Liabilities Management (PSALM) Corporation received today from Belgrove Power Corporation (Belgrove) the amount of PhP3,123,500,000.00 representing the entire purchase price for the 650-megawatt Malaya Thermal Power Plant (MTPP) and its underlying land. PSALM also received from Belgrove the amount of PhP1,062,156,423.99 as payment for the fuel inventory remaining in the MTPP. In view of the receipt of said amounts, PSALM and Belgrove executed the Deed of Absolute Sale concluding the sale transaction for the MTPP and its land.

Signing on behalf of PSALM, the President and Chief Executive Officer, Atty. Irene Besido-Garcia thanked Belgrove for the timely remittance of the purchase price and the payment for the fuel inventory. Atty. Garcia said “[T]he completion of the sale and the turnover of the Malaya Power Plant to Belgrove mark a major milestone in PSALM’s institutional history as PSALM has been trying to privatize this asset for several years already. The amount of PhP4,185,656,423.99 will be used by PSALM to settle the remaining financial obligations that PSALM absorbed from the National Power Corporation. This is a clear testament to PSALM’s commitment to exert all efforts necessary to privatize and pay for the NPC obligations.”

The purchase price paid by Belgrove is substantially higher than the minimum bid price set by the Board of Directors of PSALM for the MTPP, which was at PhP1,845,222,000.00.

With the completion of the turnover of the MTPP, Belgrove is now authorized to conduct an extensive assessment of the MTPP and pursue all its plans for the plant. Speaking on behalf of Belgrove, Atty. Joseph Omar Castillo said “We at Belgrove are very excited to operate the Malaya Power Plant. We intend to undertake the necessary repairs as soon as possible so that the Malaya Power Plant can resume operations.”

Once the MTPP is repaired by Belgrove, it can supply electricity to the Luzon grid and help ensure sufficient electricity supply in anticipation of the upcoming 2022 National Elections.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067