PSALM leases property to Philippine Coast Guard

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) has cemented a lease pact with the Philippine Coast Guard (PCG) for the latter’s use of a portion of its property in Port Area, Manila.

According to the power firm, this lease agreement will partly fulfill goals of “optimizing the use of its remaining assets.” The lease agreement will be for two years with 11.0-million monthly rental.

PSALM noted that following the property’s transfer to it by the National Power Corporation (NPC), it has been incurring maintenance costs, therefore, leasing it shall be one option to generate value from that asset.

“The lease contract is an exercise of PSALM’s fiscal prudence as it provides additional income to cover the expenses of maintaining the property,” the firm said.

The contract of lease for the Port Area property was signed between PSALM President and Chief Executive Officer Irene Joy Besido-Garcia and PCG Commandant Admiral Elson E. Hermogino on September 12 this year.

Garcia’s stint at the company seem focusing on “gaining value” for most of the NPC-transferred real estate assets – sprawling across islands in Luzon, Visayas and Mindanao.

That will be on top of the continuing privatization of the power firm’s assets, of which divestment processes had been announced to be revived latter part of this year.

One key privatization exercise that the firm will be advancing next year is that of the 650-megawatt Malaya thermal power plant in Pililla, Rizal.

PSALM is tapping a consultant that will draw up the terms of a viable divestment track for the facility – and this is a privatization undertaking it targets to be accomplished next year.

The government returned to the original plan of just selling the power plant without necessarily shifting its fuel use to gas technology.