The Manila Times

Psalm gets P3.123B bid for Malaya Thermal Power Plant

EIREENE JAIREE GOMEZ

THE Power Sector Assets and Liabilities Management Corp. (Psalm) has declared a successful negotiated sale of the privatization of the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP).

In a statement, Psalm announced Fort Pilar Energy Inc. as the winning negotiating party, after it submitted the highest bid offer of P3.123 billion.

The offer surpassed the minimum offer price of at least P1.845 billion set by the Psalm board of directors.

The other qualified negotiating party, AC Energy Corp., submitted an offer amounting to P2.220 billion.

The sale of the MTPP is on an “as-is where is” basis, which includes the 300-MW Unit 1 and the 350-MW Unit 2 as well as the underlying land, located in Pililla, Rizal.

Psalm President and Chief Executive Officer Irene BesidoGarcia expressed relief for having finally received financial bids substantially above Psalm’s minimum offer price, after several attempts to privatize MTPP the last two years.

“We are glad that this culminated in a successful privatization. Psalm definitely needs the proceeds of this privatization activity to pay for the remaining stranded contract costs and stranded debts. MTPP contributed to the losses of Psalm the past many years and so we really looked forward to selling it,” Garcia was quoted as saying.

The results of the negotiation exercise will be subject to a post-qualification process to ensure that the winning negotiating party indeed met all the financial and legal requirements as indicated in the negotiation procedures.

Representatives from the Commission on Audit, the Department of Finance, the Department of

Justice and National Power Corporation witnessed the proceedings.

MTPP is currently being dispatched as a must-run unit (MRU) by National Grid Corporation of the Philippines. However, on the turn-over date, MTPP is no longer required to run as a MRU as approved by the Department of Energy.

Business Times

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2021-05-09T07:00:00.0000000Z

2021-05-09T07:00:00.0000000Z

https://manilatimes.pressreader.com/article/281835761575455

The Manila Times