Published November 27, 2018, 10:00
PM By Myrna
M. Velasco
State-run Power Sector Assets and
Liabilities Management Corporation (PSALM) is now working on the privatization
design for the National Power Corporation (Napocor) complex in Quezon City, but
the main condition of the government is for the takers to integrate “government
energy offices” into the privatized property.
PSALM President Irene Joy B. Garcia
said that is a major bargaining chip that the government will set on the table
with the property developer to allow the construction of a building that will
house energy-related government offices – like the NPC, PSALM and the Energy
Regulatory Commission.
“We will move them to that building,
the ‘Power Center’ that will be constructed, that’s where we will put them,”
she said.
The template for that arrangement,
she said, was how it was done at the Fort Bonifacio Global City in Taguig where
there are certain buildings allotting free space for government offices.
“At BGC, the way they did it, they
computed the floor area of the government offices that they will need the
offices for. Then they made it free rent for government offices, and then the
private entity will put the capital to construct the building, then beyond
those allotted for government offices, they can rent out the rest of the
floors,” she explained.
PSALM is now sorting out the terms
for the engagement of a third party consultant that will draw up the design
concept for the privatization of the Napocor complex.
“We will have first to do the design
concept and then the master planning before we bid out the privatization,”
Garcia said.
The PSALM chief executive went on to
say that whoever wins in the bidding for the design concept, that entity will
be given three months to prepare and finalize the design of the propounded
mixed-use commercial developments of the NPC property.
At this stage, she indicated that
the preferred mode of privatization is a joint venture (JV) – meaning, PSALM
will have to partner with a private sector property developer – instead of
pursuing an outright sale of that piece of government real estate asset.
“It’s not necessarily just selling
it out as a property, it could be like a joint venture of some form with the
private entity, the one that will construct the building…so it could be like a
joint venture arrangement, we have to study what is the most optimal way that
we can generate the most proceeds,” Garcia stressed.
For share of revenues that will
flow, she noted that PSALM will do the collections throughout its remaining
corporate life or until 2026, then it will turn over everything to the national
government at the cessation of its existence.
“Based on the rules of the EPIRA
(Electric Power Industry Reform Act), after the life of PSALM, we will have to
turn over everything to the national government. What we just want to make sure
is we will try to optimize whatever we can do in the next eight years and then
we’ll turn it over to the government,” she expounded.
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