PSALM eyes P11 billion from property sale

Diliman site houses power agencies

MANILA, Philippines —  State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to raise at least P11.09 billion from the sale of its Diliman property in Quezon City, which houses several energy agencies.

PSALM is inviting interested parties to participate in the public bidding for two lots with a combined net salable area of 3.97 hectares.

The lots form part of PSALM’s larger 5.19-hectare property, where the offices of National Power Corp. and National Transmission Corp. are currently located.

“They are temporarily relocated in the course of the sale and development of the asset,” PSALM president and CEO Dennis Edward dela Serna told reporters yesterday.

Only 3.97 hectares will be offered for sale, as portions of the Diliman property have been allocated for other uses.

These include 5,000 square meters for PSALM use and another 7,250 square meters occupied by the National Control Center and Systems Operation buildings used by the National Grid Corp. of the Philippines.

According to PSALM, the bidding is open to individuals, sole proprietorships, cooperatives, corporations and partnerships that are registered under Philippine laws and at least 60 percent Filipino-owned.

Joint ventures and consortiums, as well as government corporations and local government units legally allowed to acquire, own or develop real property in the country, may also participate in the auction.

The pre-bid conference is scheduled on Sept. 3, while the deadline for bid submissions is on Sept. 24.

The due diligence period began on Aug. 17 and will run until two business days before the bid submission deadline.

Dela Serna said the property has a minimum bid price of P11.09 billion, and any offer below that amount will be automatically rejected during the bid opening.

PSALM had earlier envisioned turning the Quezon City property into a commercial center featuring high-rise mixed-use developments, with office and retail spaces.

At the time, the state-run firm considered an outright sale of the property “less advantageous for the government than purposefully developing it in accordance with its best use.”

PSALM is mandated to manage the sale and privatization of the government’s existing power generation assets, independent power producer contracts, real estate and all other disposable assets.

It reduced its financial obligations by P13.4 billion last year, bringing its outstanding balance down to P260.6 billion.

The debt-laden agency expects to further slash its obligations with the planned rehabilitation of the Agus-Pulangi hydropower complex in Mindanao.

Earlier this year, PSALM completed the privatization and turnover of the 797-megawatt Caliraya-Botocan-Kalayaan hydro complex to the Aboitiz-led Thunder Consortium, which offered P36.3 billion for the asset.