PSALM selling Pampanga property to pare down debts
The Power Sector Assets and Liabilities Management Corp. (PSALM) is selling its property in Pampanga for P803 million to raise funds so it could repay its debts.
In a bid invite, PSALM is inviting interested parties to participate in the auction of its 50,447-square-meter lot in Brgy. Lagundi in Mexico, Pampanga, for P803.151 million. This is the minimum bid price (MBP) set by the agency. Bids below the MBP shall be automatically rejected at bid opening which is scheduled on October 20.
PSALM has set a pre-bid conference on September 24. A participation fee of
P100,000.00 is required.
Last month, the state firm said it has already raised over P36 million from the sale of its real estate assets.
“PSALM successfully privatized its real estate assets located in Agusan, Maco and Nasipit, raising a total of P36,233,308.00 that can be utilized to pay for remaining liabilities of the National Power Corp. (NPC).
Once remitted to PSALM, the proceeds will be used by us to pay the remaining financial obligations that we got from the NPC,” said PSALM President and Chief Executive Officer Irene Besido Garcia.
FG Bukidnon Power won the bid for the three lots, with a total area of 10,596-sq. m in Agusan, Manolo Fortich, Bukidnon. Its winning bid amounted to P28.61 million.
The Agusan property is an area where land development can be for mixed residential and agricultural purposes. It is also an industrial lot suitable for power plant operations.
PSALM’S 1,595-sq. m property in Maco, Davao de Oro City, was sold to Therma Marine Inc., which submitted a bid of P3.209 million.
The third property, a 3,395-sq. m lot in Nasipit, Agusan del Norte, was also bagged by TMI for P4.414 million.
The Maco property is in a coastal area with a small port, making it ideal for business ventures related to the fishing industry while the Nasipit property is in an area where land development is suited for industrial purposes.
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, the law that restructured the power industry by privatizing the assets of NPC.
Funds in settling PSALM’S assumed financial obligations are sourced from collections from its power generation, privatization proceeds, and universal charge.