Friday, November 8, 2019

PSALM sells 3 land assets in 3 provinces for P934.72M


By Lenie Lectura - November 8, 2019

THE Power Sector Assets and Liabilities Management Corp. (PSALM) has sold three of its land assets for P934.72 million.
The state firm said Thursday it successfully privatized through public biddings the land asset in Aplaya, Misamis Oriental, which consists of 49 lots with a total area of about 155,504 square meters for P600 million; the land asset in Toledo City, Cebu, which consists of 21 lots with a total area of about 129,589 square meters, for P250,000,000; and the land asset in Laoag City, Ilocos Norte, which  has a total area of about 3,530 square meters, for P84.72 million.
These land assets used to be the location of the dismantled Aplaya Diesel Power Plant and the Cebu Diesel Power Plant. In 2009, PSALM privatized the power plant structures based on their scrap value and these are now either on ground zero or with minimal structures left.
Proceeds from the sale of these assets will be used to augment funds to settle PSALM’s assumed financial obligations.
“We are very happy that our public biddings were successful. The total bid amount of P934,720,000, once remitted to PSALM, will be used by PSALM to pay its remaining financial obligations,” said PSALM President and CEO Irene Besido-Garcia.
Two bidders participated in the biddings of these land assets, namely Pan Pacific Renewable Power Philippines Corp. and Panasia Energy Inc.  Panasia submitted the higher bids and was, thus, declared the winning bidder, subject to the post-qualification process.
The biddings were PSALM’s second attempt at privatizing these land assets.   In September 2019, PSALM conducted the first round of bidding of the same assets. However, PSALM declared a failure of bidding because only one bidder submitted a bid for the assets in Misamis Oriental and Cebu, while none submitted for the Laoag City asset.
PSALM immediately sought the approval of the PSALM Board to commence the second round of bidding, which culminated in today’s successful submission and opening of bids.

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