PSALM prepared for more privatization

MANILA, Philippines — The Power Sector Assets and Liabilities Management Corp. (PSALM) is gathering potential investors next month as it prepares to privatize and sell its remaining assets.

PSALM said it would hold an investors forum on Dec. 1 to generate interest in the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants, as well as the rehabilitation and asset management plan for the Agus-Pulangi hydroelectric power plants with a private partner.

Through the forum, PSALM aims to strengthen investor relations and facilitate the interchange of information to further improve the privatization procedure for its remaining assets.

“We are thrilled to conduct this one-day event that will convene a wide variety of investors to discuss PSALM’s privatization and disposal process,” PSALM president and chief executive officer Dennis dela Serna said.

“This is an opportunity for PSALM to provide participants with first-hand information regarding our privatization and disposal procedure. At the same time, we eagerly anticipate their inquiries and recommendations, as they could potentially aid in the improvement of our business process,” he said.

Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, PSALM is mandated to privatize all transferred assets from the National Power Corp. with the objective of liquidating all of the latter’s financial obligations.

PSALM earlier said it plans to release by December the invitation to bid for the 796.46-megawatt (MW) CBK hydroelectric power plant complex in Laguna, which is part of the P45-billion worth of key remaining assets which the state-owned corporation has yet to privatize.

Aside from the CBK, remaining assets to be privatized and disposed by PSALM include the 200-MW Mindanao coal-fired power plant, 72 hectares of real estate assets in Bagac, Diliman, Sucat and Baguio, as well as land underlying independent power producer plants.

Meanwhile, PSALM is studying a rehabilitation project for the Agus and Pulangi hydroelectric power plants, with plans to start the bidding process by next year.

Last May, PSALM conducted a successful public bidding of the 165-MW Casecnan hydroelectric power plant, in which Fresh River Lakes Corp., a subsidiary of the Lopez Group’s First Gen Corp., emerged as the highest bidder.