PSALM sets auction for Paco property

THE Power Sector Assets and Liabilities Management Corp. (PSALM) said it is selling its property in Paco, Manila, for P513 million.

In a bid invite, the agency said the auction for the 20,975-square meter property will take place on September 10.

The property, which is composed of eight lots, used to be the site of the former Manila Thermal Power Plant in Isla de Provisor, Paco, Manila.

PSALM has set the minimum bid price at P513,439,000.00.

The winning bidder shall pay for all taxes, fees and other charges due on the sale transaction.

Proceeds from the sale of PSALM’S assets will be used to augment funds to settle the state firm’s assumed financial obligations.

PSALM has about P51.47 billion maturing debts and P23.95 billion of IPP (Independent Power Producer) Lease Obligations for the rest of 2020. Also, PSALM needs about P3.42 billion in operational expenses for the rest of the year.

PSALM is the entity created by the Electric Power Industry Reform Act of 2001, the law that restructured the power industry by privatizing the assets of the National Power Corp. (NPC). Funds in settling PSALM’S assumed financial obligations are sourced from collections from its power generation, privatization proceeds, and universal charge (UC).

PSALM, with the supervision and approval of the Energy Regulatory Commission, administers the collection of the UC, which is collected every month by the distribution utilities from all electric consumers.