By Faye Almazan August 27, 2021
THE Power Sector Assets and Liabilities Management Corp. (Psalm) on Wednesday received P3.12 billion from Belgrove Power Corp. for the purchase of the 650-megawatt Malaya Thermal Power Plant (MTPP).
In a statement, Psalm said it also received P1.06 billion from Belgrove for the payment of the remaining fuel inventory in MTPP.
"In view of the receipt of said amounts, Psalm and Belgrove executed the Deed of Absolute Sale concluding the sale transaction for the MTPP and its land," PSALM explained.
Psalm President and Chief Executive Officer Irene Besido Garcia said the completion of the sale of the power plant marks a "major milestone" in the institution's history as it has been trying to privatize the asset for several years.
Psalm noted that the purchase price paid by Belgrove is substantially higher than the minimum bid price set by its board, which was at P1.85 billion.
Garcia said the almost P4.19-billion payment will be used by Psalm to "settle the remaining financial obligations that Psalm absorbed from the National Power Corp."
Meanwhile, the completion of the transaction now authorizes Belgrove to conduct an extensive assessment of MTPP and pursue all its plans for the plant.
"We at Belgrove are very excited to operate the Malaya Power Plant. We intend to undertake the necessary repairs as soon as possible so that the Malaya Power Plant can resume operations," Joseph Omar Castillo, who spoke on behalf of Belgrove, was quoted as saying.
Once repaired, the MTPP is expected to supply electricity to the Luzon grid and help ensure sufficient electricity supply in anticipation of the national elections next year.
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