PSALM mulls rebid of real estate assets

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is preparing to rebid some its real estate assets in the provinces following a failed bidding.

These properties, which were auctioned off last Sept.5, are located in Bgy. Aplaya, Jasaan, Misamis Oriental, Toledo City, Cebu and in Laoag City, Ilocos Norte.

PSALM president and chief executive officer Irene Joy Besido-Garcia said there were no bid offers for the Ilocos Norte property.

“Thus, we had to declare a failure of bidding because the COA (Commission on Audit) rules require offers from at least 2 two bidders,” BesidoGarcia said.

Besido-Garcia cited the the steep minimum bid price for the property as one of the reasons for the failed bidding.

“I have actually been quite concerned about some rules on privatization of assets and the procedure for setting of the minimum bid price.We are not able to attract bidders because the minimum bid price is usually on the high side and does not take into account certain asset-specific issues,” she said.

“PSALM cannot unilaterally reduce the minimum bid price as such may be questioned by COA. This situation leads to a failure of bidding, which causes delay in our privatization schedule,” Besido-Garcia said.

She said PSALM has already appealed to COA chair Mike Aguinaldo to come up with clear rules or guidelines on reasonable price adjustments that will enable the agency to make biddings more attractive to prospective bidders.

PSALM is working on initiating the second round of public bidding after submitting its proposal to the agency’s board within the month.

“Hopefully, we can publish the invitation to bid by end of September, to commence the second round. Bid submission date for the second round will be around the second week of November,” Besido-Garcia said.

The state-run firm is committed to privatize these land assets within 2019 “but it is also important that the adjusted bidding timetable expediting the second round of bidding is in line with applicable laws,” she said.

The land asset in Aplaya, Misamis Oriental consists of 49 lots with a total area of about 155,504.00 square meters.

In Toledo City, Cebu, the land asset consists of 21 lots with a total area of about 129,589.00 sqm and the asset in Laoag City, Ilocos Norte has a total area of about 3,530 sqm.

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