Manila Thermal Power site to be auctioned next week

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THE Power Sector Assets and Liabilities Management Corp. (PSALM) has scheduled for next week an auction for the 20,975 square-meter former site of a thermal power plant in Manila.

“PSALM has scheduled the bidding for the Manila Thermal Power Plant Land on Aug. 15, 2018,” the company said in a response to a set of questions sent via e-mail.

“PSALM intends to republish an Invitation to Bid for the property containing its minimum bid price,” it added.

The property is on Isla de Provisor, along the Pasig River, in Paco, Manila.

PSALM also disclosed the schedule for the Malaya Thermal Power Plant auction on an “as is, where is” basis, thus doing away with a previous proposal of the Department of Energy (DoE) to require the winning bidder to convert the plant into a gas-fired power facility.

PSALM, the agency tasked to handle the privatization of the government’s power generation assets, said the publication of the invitation to bid for the Malaya plant is scheduled within this month. It did not specify a date.

“Pre-Bid Conference with Prospective Bidders will be held in September 2018,” it said. “Bidding will commence in November 2018.”

PSALM has said that it had generated privatization proceeds from assets amounting to P918.5 billion, of which it had collected P545.2 billion. The balance will follow a payment schedule. The agency said it had recently privatized more than 900 hectares of real estate power assets. It also sold Power Barge 104 and the decommissioned Sucat Thermal Power Plant.

PSALM, which assumed in 2003 the P1.24 trillion liabilities of National Power Corp., had since reduced that debt.

As of June 30, its remaining principal debt was down to P246.73 billion, while the remaining obligations under its independent power producer (IPP) contracts amounted to P202.7 billion.

PSALM said it has reduced the financial obligations to P449.4 billion, equivalent to a 64.35% reduction. — Victor V. Saulon