Napocor eyes P22 B from sale of idle assets

The National Power Corp. (Napocor), the country’s largest power producer, expects to raise more than P22 billion by disposing some of its non-performing assets this year.

Napocor president Jesus N. Alcordo said the proceeds from the sale of the assets will be used to finance its maturing obligations this year and help reduce the company’s losses.

As of end-December 2000, the company recorded total loans of P900 billion and a net loss of P20 billion, including interest expense. About $150-million loans will mature this October.

Alcordo said they expect to raise P10 billion from the sale of properties and some transportation facilities like aircraft and barges.

Specifically, he said, they are planning to dispose of a 12-hectare real estate property in Makati, including the site of the Mile Long arcade and a portion of Ecology Village. Napocor‘s real estate assets in various parts of Metro Manila total about 25 hectares.

Napocor also owns real estate near the Makati Central Post Office; Sucat, Parañaque, Quezon City and Intramuros which used to house the first Napocor building. It also has some properties in Visayas and Mindanao which are expected to be sold.

The power firm is also planning to sell its eight-seater King-Air aircraft which was purchased at $5 million. It will also dispose of two power barges which are acquired P100 million each.

Napocor also expects some P12 billion from the sale of inventories and idle spare parts.

According to Alcordo, they have prepared a program that would identify which inventory and spare parts would be converted to cash. "We will identify which are not moving or slow moving and sell these and convert to cash," Alcordo said.

At the same time, Alcordo said they would review the previously-awarded coal contracts. "In one week’s time we would decide what to do with these contracts," he said, adding that they are not sure at the moment whether they would rebid or not the coal contracts.

Alcordo said there have been complaints about the quality of coal that were delivered by the winning bidders. "Some complaints are being aired. We would like to investigate this. A special meeting will be conducted to discuss these issues," he said.

The Napocor chief said they are also looking into the four failed biddings and determine if they would hold another rebidding for these contracts.

He said they would also decide during special meeting if they would include in the review the fuel bidding.

Under the present bidding rules, all contracts above $50 million need an approval from Malacañang. "We want to see if this particular ruling and other related issues are not violated," he said.