PSALM mulls conversion of idle lands into ecozones

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has commenced studies to turn its real estate assets into ecozones.

The suitability study, which will be done through the Philippine Economic Zone Authority (PEZA), will determine the viability of converting real estate assets into economic sites.

PSALM and PEZA have formed a joint technical working group to jumpstart the profiling project and suitability assessment.

PSALM provided a list of assets to PEZA for consideration in its initial phase of suitability assessment. Included in the assessment are the nine sites situated in various locations in Metro Manila, Pampanga and Bataan.

The study follows the memorandum of understanding (MoU) entered into by PSALM and PEZA in December 2017 to consummate the newly formed joint undertaking.

It aims to enhance collaboration towards utilization of PSALM’s idle real estate assets. Institutional arrangements will be determined following the results of the suitability study.

Converting some of PSALM’s real estate assets into economic zones is an important privatization undertaking as this will provide a long-term opportunity to generate sustainable revenue while the government remains the property owner.

With the real estate conversion, PSALM will be able to generate income streams which will augment its fund sources to pay-off its assumed financial obligations.

Moreover, the state-run firm will also realize its strategic goal of participating in local and national development.

“Aligned with PEZA’s mandate, PSALM’s move to convert its land assets into ecozones will help augment job opportunities and stimulate economic activities, thereby, providing more income for Filipinos,” PSALM said.

Earlier, PEZA director general Charito Plaza said the agency is increasing efforts to transform idle lands into special economic zones to drive economic development in communities.