PSALM puts up Manila thermal plant for sale

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is now seeking offers for the negotiated sale of the Manila thermal power plant property.

PSALM has set the minimum offer price for the property at P736.37 million.

The negotiated sale comes after two failed rounds of bidding on Aug. 15 and Nov. 23, 2018,.

 PSALM set the deadline for the submission of offers on Jan. 31. The schedule for due diligence activities started last Jan. 9.

The Manila thermal facility is situated along the Pasig River in Isla de Provisor, Paco, Manila and has an indicative area of 20,975 square meters.

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

The property was among the assets intended for sale last year to further bring down the state-run firm’s liabilities.

PSALM is the agency mandated by the 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 last year, 64 percent lower than the peak of P1.24 trillion in 2003.

Broken down, its remaining principal debt is P246.73 billion, while the remaining obligations under PSALM’s  Independent Power Producer contracts amount to P202.7 billion.