PSALM prepares sale of Napocor assets

MANILA, Philippines - The government will start selling non-power assets of the National Power Corp. (Napocor) through the Power Sector Assets and Liabilities Management Corp. (PSALM), a ranking energy official said.

PSALM, an entity created under the Electric Power Industry Reform Act (EPIRA), handles the privatization of Napocor assets.

PSALM president Emmanuel Ledesma said they have chosen an appraiser for more than 100 artifacts, particularly expensive paintings owned by Napocor.

According to Ledesma, they expect the sale of some 116 artworks to take about two years, adding that they have yet to determine how much they could raise from the sale of these artworks.

“We have just procured the services of an appraiser. We have works done by Sanso, Joya, Baldemor, among others,” he said.

PSALM conducted an inventory last August this year which revealed that 116 artworks comprised the entire collection, with 60 paintings classified as done by professional artists, 55 paintings done by amateur artists, and one unclassified due to unavailability of information.

PSALM earlier said it officially assumed ownership of the artwork collection upon the implementation of Napocor’s asset and debt transfer in October 2008. The artworks form part of the properties recorded by Napocor under the general plant equipment account.

However, Ledesma said the artworks have yet to be computed in the privatization account of Napocor.

PSALM said the revised guidelines on appraisal of property under the Commission on Audit do not cover the appraisal of real estate, antique property and works of art.

“As such, the services of a third-party appraiser are necessary to carry out the appraisal of the artwork collection,” it said.

PSALM said the conduct of the appraisal is imperative in line with the agency’s corporate target to dispose 50 percent of the artwork collection next year and the remaining 50 percent in 2013.