The Power Sector Assets and Liabilities Management Corp. (PSALM) will bid out on Feb. 6 the decommissioned Manila Thermal Power Plant (MTPP), the first power facility to be sold this year.
PSALM vice president Froilan Tampinco said they expect the two pre-qualified bidders to participate in the bidding. Although he declined to identify the two, Tampinco hinted that one group is Malaysian and the other is Korean.
Industry sources said the Malaysia-based Gagasan Steel Sdn Berhad is one of those that have been pre-qualified. The identity of the Korean group, however, is yet to be revealed.
Gagasan, founded by Norsharina Mohd Shahar in July 1998, is recognized throughout the industry when it comes to the removal and disposal of metal scrap.
Among its high-profile clients include Tenaga Nasional, Telekom Malaysia, Keretapi Tanah Melayu, Felda Palm Industries Sdn Bhd, Keretapi Tanah Melayu Berhad, Delta Metal, Malaysia Shipyard & Engineering, among others.
MTTP, located in Ermita along the Pasig River, covers an area of about two hectares and is considered a prime commercial lot in Manila.
The MTPP facilities were retired in January 2000. It contributed power to the Luzon grid since 1965. All plant systems are intact and all major equipment properly maintained and preserved.
The first two biddings for the MTPP in 2005 and 2006 failed primarily due to lack of investor interest.
PSALM has decided to include the underlying land to the sale of MTTP to lure more bidders into the sale.
The government wants to ensure that the winning bidder of MTPP will be able to dispose of any toxic materials from the decommissioned power facilities.
The group that will buy MTPP should be majority-owned by Filipinos. Under the law, no foreigners can own real estate properties in the Philippines.