PSALM fails to sell Manila power plant site
A state-owned firm’s bid to sell the site of a former power plant in Manila has been declared a failure after prospective buyers backed out.
The Power Sector Assets and Liabilities Management Corp. (PSALM) had set an August 15 deadline for offers to purchase the 20,975-hectare Manila Thermal Power Plant property, located on Isla de Provisor on the Pasig River, on an “as is where is” basis.
The minimum bid was set at P885.7 million and PSALM officials had expressed optimism that the site’s proximity to Manila’s business district would attract buyers.
Four prospective buyers had purchased bid documents but no offers were submitted by 12 noon of August 15, PSALM said, adding that it would be looking for reasons why this happened.
A new auction will be launched “as soon as the roadmap for the second round of bidding is finalized.”
PSALM wanted to use sale proceeds to manage liabilities assumed from National Power Corp. (Napocor).
The Manila thermal plant was decommissioned in 2000 and the facility sold in 2009.
Under Republic Act 9136 or Electric Power Industry Reform Act (Epira) of 2001, PSALM is mandated to sell the state’s remaining power assets and settle Napocor’s financial obligations.
Its principal debt stood at P246.73 billion as of June while remaining obligations under independent power producer contracts stood at P202.70 billion.
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