THE Power Sector Assets and Liabilities Management Corporation (PSALM) has successfully sold the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) via a negotiated bid.
The state firm said late Friday that Fort Pilar Energy Inc. submitted the highest offer—P3,123,500,000.00. It surpassed the Minimum Offer Price of P1,845,222,000.00 that was set by the PSALM Board of Directors for this negotiated sale process.
The other qualified negotiating party, AC Energy Corporation, submitted an offer of P2,220,000,000.00.
The sale of the MTPP is on an “As-Is Where Is” basis. It includes the 300-MW Unit 1 and the 350-MW Unit 2 as well as the underlying land, located in Pililla, Rizal.
“After several attempts to privatize MTPP the last two years, we are very happy to have finally received financial bids substantially above our Minimum Offer Price. We are glad that this culminated in a successful privatization.
PSALM definitely needs the proceeds of this privatization activity to pay for the remaining stranded contract costs and stranded debts. MTPP contributed to the losses of PSALM the past many years and so we really looked forward to selling it,” PSALM President and Chief Executive Officer Irene Besido-Garcia said.
The sale is subject to a post-qualification process to ensure that the winning negotiating party met all the financial and legal requirements as indicated in the negotiation procedures.
Representatives from the Commission on Audit (COA), the Department of Finance (DOF), the Department of Justice (DOJ) and National Power Corporation (NPC) witnessed the proceedings.
MTPP is currently being dispatched as a Must Run Unit (MRU) by NGCP. However, on the turnover date, MTPP is no longer required to run as an MRU as approved by the Department of Energy (DOE).
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