MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has generated enough interest for its various idle properties up for sale.
PSALM is proceeding with the second round of bidding for its real estate assets (REAs) in Barangay Aplaya, Jasaan, Misamis Oriental, Toledo City, Cebu and in Laoag City, Ilocos Norte this month.
For each of the property, PSALM president and CEO Irene Joy Besido-Garcia said there are “two bidders that purchased bid documents.”
PSALM has set a Nov. 6 deadline for the submission of bids after the first round of bidding failed last September.
Despite several interested parties that bought the bidding package, the Misamis Oriental and Cebu assets only garnered one bidder each.
Meanwhile, there were no bid offers submitted for the Ilocos Norte property.
One of the issues for the failed bidding is the steep minimum bid price for the properties, Besido-Garcia earlier said.
However, PSALM cannot unilaterally change the price because it could be questioned by the Commission on Audit (COA).
In the new round of bidding, PSALM has set the minimum price bid of P567.63 million for the Misamis Oriental property, P171.47 million for the Cebu asset, and P70.6 million for the Laoag real estate.
The land asset in Aplaya, Misamis Oriental consists of 49 lots with a total area of about 155,504.40 square meters.
The land asset in Toledo City, Cebu consists of 21 lots with a total area of about 129,589 sqm and the asset in Laoag City, Ilocos Norte has a total area of about 3,530 sqm.
PSALM is committed to privatize these land assets within the year.
Proceeds from the sale of these assets will be used to augment funds to settle PSALM’s assumed financial obligations.
Apart from this, PSALM is looking to redevelop its 5.195-hectare Diliman, Quezon City property to take advantage of its location.
PSALM is the agency mandated by Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 to handle the sale of the remaining state-power assets and the financial obligations of National Power Corp. (Napocor).
It reduces debts through the privatization of government-owned assets, collection of the proceeds and its effective implementation of its liability management program.
As of the end of June, PSALM had P428.9 billion in remaining payables. It has seven years left in its corporate life ending in 2026.