PSALM defers sale of P10-B Napocor assets

The Power Sector Assets and Liabilities Management Corp. (PSALM) will defer indefinitely the disposal of some P10 billion worth of properties and transportation assets of the National Power Corp. (Napocor).

"We won’t be selling these assets especially with what’s going on in the market right now," PSALM president Edgardo del Fonso said.

Del Fonso said it would not be viable for the state-owned power firm to dispose of these assets. "We might fetch a lower price for these properties at this time when the market is down," he said.

The PSALM chief said they are focusing their attention on major assets of the state-run power firm such as its transmission and generation assets which are up for sale in July this year and early 2004, respectively.

"Our focus is on major assets. Besides, we might be using some of these transportation facilities and might not need to dispose them," he said.

Earlier, Napocor planned to sell its eight-seater King Air which was purchased at $5 million.

But del Fonso said they may no longer dispose of the King Air and two other choppers of Napocor. "These assets might be needed in the operations of the National Transmission Corp. (Transco).

Napocor will be selling its transmission and generation assets within this year as part of the restructuring of the power industry as mandated by Electric Power Industry Reform Act (EPIRA) or Republic Act 9136. Under the new power law, PSALM will manage the finances and assets of Napocor.

According to del Fonso, they are still in the process of getting the present value of these assets. "We are going to engage a private appraisal firm anytime now," he said, noting that appraising the value of these other assets of Napocor will take time.

Napocor owns a 12-hectare property in Makati, including the site of the Mile Long Arcade and a portion of the Ecology Village.

Del Fonso said the National Government, through the Department of Finance (DOF), will take charge of the disposal of the Mile Long property.

Napocor also owns a real property near the Makati Central Post Office; Sucat, Paranaque; Quezon City and Intramuros which used to house the first Napocor building. There are also some properties in Visayas and Mindanao which are expected to be sold. Napocor’s real estate assets in various points of Metro Manila total to about 25 hectares.

The power firm also plans to dispose two power barges which are acquired P100 million each.

Apart from the property and transportation facilities, Napocor also expects to raise about P12 billion from the sale of other inventories and idle spare parts.