5 keen on Malaya power plant

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    Five firms have submitted letters of interest for the third round of negotiated sale of the assets of the 650-megawatt Malaya thermal power plant (TPP) in Pililla, Rizal.

    The Power Sector Assets and Liabilities Management Corp. (PSALM) said these are China Gezhouba Group Co., Sta. Clara International Corp., VBB Trucking Trading and Consultancy Services, Inc., Fort Pilar Energy Inc. and AC Energy Philippines Inc.

    “PSALM looks forward to a successful privatization process for the Malaya power plant.

    We are excited that five firms expressed interest to join the process. We have lowered the minimum offer price already. Hopefully, this round will allow us to finally sell the Malaya Power Plant,” said Irene Besido-Garcia, PSALM president and chief executive officer, in a statement.

    The minimum offer price for the property has been reduced to P1,845,222,000 from P2,007,780,000 at the second round of negotiated sale.

    PSALM said a pre-negotiation conference will be held tomorrow, March 9. Deadline for submission of offers is on April 23.

    PSALM incurred an annual average net loss of P1.207 billion from 2010 to 2019 in maintaining the plant which was declared a must-run unit in 2014 to provide security capacity during shortages in electricity supply and ensure system reliability of the Luzon grid.

    The average annual net loss of PSALM if based on the years it is running as a must-run unit from 2015 to 2019 is at P556.2 million.