PSALM sets P886-million minimum bid for Manila thermal plant

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is inviting more bidders to participate in the privatization of the Manila thermal power plant property this month after it set the base price for the land.

PSALM approved the minimum bid price for the property at P885.75 million.

The sale of the real estate property is aimed at augmenting its funding sources which will be used in servicing assumed financial obligations, it said.

PSALM said the invitation to bid does not refer to a new project, but merely intends to inform interested bidders of the land’s minimum bid price.

It first published the invitation to bid last Dec. 5 to 7 but did not disclose the minimum bid price which was not set at that time.

PSALM said any bid below the minimum bid price would be automatically rejected during bid opening. Interested parties are likewise informed that the property will be sold on an “as is,” where is” basis.

Bidding is open to individuals and sole proprietorships, partnerships or corporation, joint ventures or consortiums, government corporate entities and local government units authorized by law to acquire, own, hold or develop real properties in the Philippines.

If the bidder or any of its components is a corporation, it must be duly registered and organized under the laws of the Philippines and at least 60 percent Filipino-owned.

The property is situated in Isla de Provisor along Pasig River in Paco, Manila. Comprising eight lots, the property has an approximate area of 20,975 square meters.

PSALM is the agency mandated by Electric Power Industry Reform Act (EPIRA) of 2001 to handle the sale of the remaining state-power assets and the financial obligations of Napocor.

The state-run firm has a financial obligation of P449.4 billion as of the end of June, 64 percent lower than its peak of P1.24 trillion in 2003.

Broken down into specific items, PSALM’s remaining principal debt is P246.73 billion and the remaining obligations under its independent power producer contracts amount to P202.7 billion.