PSALM resets auction of Pampanga property

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is again auctioning off its five-hectare prime property in Pampanga.

In its invitation to bid, PSALM said it is privatizing its 50,447-square meter property, located in Barangay Lagundi, Mexico, Pampanga again on an as is, where is basis.

It has set the bid submission deadline on March 25. Interested bidders can conduct their due diligence on the property starting Jan. 4 and attend the pre-bid conference on Feb. 10.

PSALM has yet to set the the minimum bid price (MBP) for the property.

In the previous round, PSALM set the MBP at P803.15 million. There were three interested parties for the property namely, United Ascent Holdings, Panasia Energy Inc. and Pan Pacific Renewable Power Philippines Corp. The first round, however, was declared a failure.

The Mexico property, situated along Jose Abad Santos Avenue and 2.5 kilometers from the North Luzon Expressway, is suitable for residential and commercial land development, PSALM said.

“This is a prime real property of PSALM, in a good location with a clean title. It can be utilized for various commercial purposes,” PSALM president and CEO Irene Besido Garcia said.

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, as well as the financial obligations of National Power Corp. (Napocor).

The privatization programs aim to generate additional income for the payment of PSALM’s assumed liabilities.

Revenues from the successful sale of PSALM land properties will be used to augment funds for the settlement of the assumed financial obligations from Napocor.

As of end-October, the state-run firm’s outstanding financial obligations decreased to P371.18 billion as of end-October from P422.01 billion at the start of the year. This consists of outstanding debts amounting to P252.16 billion and IPP lease obligations of P119.02 billion.