MANILA, Philippines – State-run Power Sector Assets and Liabilities Management (PSALM) Corp. is planning to dispose all Visayas and Mindanao scrap assets by 2017, a ranking official said.
The Visayas and Mindanao assets were bid out last March 31 but was declared a failure, PSALM officer-in-charge Lourdes S. Alzona said in a text message.
“In the sale of Vis/Min scrap assets, it was declared a failed bidding as no bidders met the reserve price,” she said.
The sale involved all materials, scap and plant equipment of Cebu Diesel Power Plant II in Toledo City, Cebu, Palinpinon Geothermal Power Plant in Valencia, Negros Oriental, Bohol Diesel Power Plant in Tagbilaran City, Bohol and Aplaya Diesel Power Plant in Jasaan, Misamis Oriental.
The minimum price for the said assets amounted to P18 million.
Following the failed bidding, Alzona said the agency is mulling another round of bidding for the Visayas and Mindanao assets.
She said PSALM is targeting to dispose all excluded or scrap assets until 2017.
While the sale of these plants are not urgent, disposal of the assets will lessen the costs incurred by PSALM.
“It’s not actually urgent but we want these assets be disposed the soonest to avoid the associated costs for maintaining them,” Alzona said.
PSALM is the entity created by the Electric Power Industry Reform Act the law that restructured the power industry by privatizing the government-owned assets under the National Power Corp.