More property developers join bid for Manila thermal plant

A growing number of property developers has expressed interest to bid for the Manila Thermal Power Plant (MTTP), a ranking official from the Power Sector Assets Liabilities Management Corp. (PSALM) said.

PSALM is the state entity tasked to oversee the privatization of the assets of the National Power Corp. (Napocor).

Froilan Tampinco, PSALM vice president for asset management and electricity trading, said there are already four real estate development firms expected to attend the pre-bid conference for MTPP on Oct. 30. PSALM will auction the decommissioned power facility on Dec. 19.

PSALM earlier said two real estate property companies are eyeing to join forces with scrap/asset disposal firms to bid for MTPP.

Tampinco said the real estate firms would be among the 12 groups that have so far signified interest to join the bidding.

He said the property firms have the option to develop the land into commercial projects such as shopping malls or complexes.

The PSALM official said the number of bidders normally goes down during the bidding proper as potential investors tend to consolidate or form partnerships to increase their capability to win the asset.

But Tampinco said what PSALM wants to ensure is that the winning bidder has the ability or is qualified in disposing any toxic material normally present in decommissioned power plants.

Another requirement, he said, is that the group should be majority owned by Filipinos. Under the law, no foreigners should own real estate properties in the Philippines.

As of Oct. 12, he said four groups have already expressed interest to join the MTPP bidding, two of which are foreign companies.

MTPP, located at Isla de Provisor in Paco, Manila, will be sold after PSALM received positive feedback from investors on the government’s privatization program.

PSALM, previously considered against selling the retired plant after it failed to generate interest in its auction as scrap. But now, PSALM said it hopes to attract more investors in the MTPP auction by including the land in the sale.

The two-hectare land is located in a prime area, being near SM Manila and other commercial centers. The size of the land is also ideal for industrial purposes.

Since the plant is already retired, PSALM expects bidders engaged in the construction or steel manufacturing business, or those eyeing the scrap value of MTPP’s equipment, component auxiliaries and accessories, to participate in the bidding.

Located in Ermita along the Pasig River, the MTPP, first commissioned in 1966, has two identical generating units, each with a capacity of 100 megawatts.