PSALM lowers minimum offer anew for Rizal asset

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    The Power Sector Assets and Liabilities Management Corp. (PSALM) is further lowering the minimum bid price offer for the privatization of the 650 megawatts Malaya thermal power plant (TPP) and its underlying land in Rizal province after the second round of its negotiated sale process failed.

    The state-run firm said the property is now being offered for at least P1,845,222,000 compared to the previous P2,007,780,000.

    “Compelling factors such as lower electricity demand, book value of the plant and its land, impact of the pandemic on the market, the zonal value of the land and the substantial losses incurred by PSALM from maintaining Malaya TPP were all considered before deciding to offer this asset at a lower price,” said Irene Joy Besido-Garcia, PSALM president and chief executive officer.

    Interested parties must submit a letter of interest no later March 5. A pre-negotiation conference will be held on March 9 while the deadline for submission of offers is on April 23.

    PSALM has conducted three rounds of bidding and two negotiated sale processes to dispose the assets but all failed either due to lack of interested bidders or the offers were below the minimum bid price set.

    Proceeds from the sales of all PSALM assets are to be used u to settle maturing obligations inherited from the National Power Corp. as well as to minimize borrowings.