PSALM sets revaluation of Napocor assets

The Power Sector Assets and Liabilities Management Corp. (PSALM) will re-evaluate the generating assets of the National Power Corp. (Napocor) lined up for sale this year, a top official said yesterday.

PSALM vice president Froilan Tampinco said they will commission an asset valuation firm to undertake a new assessment of Napocor’s assets.

"We hope we can get a better revaluation considering that Napocor is undertaking the rehabilitation of its plants," he said.

He said with the revaluation, the sale of the first batch of assets this year would generate higher proceeds.

Tampinco said an example would be the Talomo plant in Davao, the first power plant up for auction on March 24.

"Talomo has already undergone rehabilitation. Before, it is operating with only one unit. Now, it is operating with three units after the rehabilitation. We hope to fetch a better price for it now," he said.

Earlier estimates show that the government could raise about $2 billion in proceeds from the sale of the generating assets of Napocor.

Next month, PSALM will auction off three more power plants in Bohol and Loboc. By May, it expects to sell the Agusan, Barit/Cawayan, Bataan thermal and Manila thermal plants.

By June this year, five more plants are expected to be sold. These are Aplaya, General Santos, Cebu II, Pinamucan/Panay, and Masinloc.

PSALM will sell a total of 35 power plants out of which 18 power facilities to be sold individually and the rest lumped for sale in eight groups.

As deal sweetener, PSALM will sell these assets with a land lease agreement of 25 years, partly to resolve the 40-percent limitation on foreign ownership.