The proposed divestment of the 650-megawatt Malaya thermal power facility has enticed at least five firms to join the plant’s ‘negotiated sale arrangement’ giving hopes to state-run Power Sector Assets and Liabilities Management Corporation that it could finally sell the asset this time.
Interested bidders include foreign firm China Gezhouba Group. Co. Ltd., and four local companies AC Energy Philippines Inc., Sta. Clara International Corporation, VBB Trucking Trading and Consultancy Services Inc., and Fort Pilar Energy Inc.
The privatization of the Malaya plant had been among the longest asset divestment exercise worked on by PSALM, but the previous sale processes failed because of the ‘low price offers’ dangled by the prospective buyers.
With the revived interest of investors in the ‘negotiated deal’ exercise, PSALM is eyeing that it may finally gain success in this round.
As asserted by PSALM President and CEO Irene Besido-Garcia, the asset-seller firm “looks forward to a successful privatization process for the Malaya power plant,” given recent decision sanctioned by the PSALM Board to also bring down the minimum offer price (MOP) to P1.845 billion.
It has to be noted that the sale price for the Malaya power facility and its underlying site had already been pared several times. Starting from P4.481 billion, the sale price was cut to P2.188 billion in series of competitive but failed biddings carried out last year.
When PSALM opened the ‘negotiated deal’ divestment strategy for the plant, the minimum bid price was also correspondingly trimmed to P2.007 billion and a further lower MOP for the current round.
On finally seeing glimmer of hope on the facility’s privatization, Garcia said “We are excited that five firms have expressed interest to join the process.”
She said “We have lowered the minimum offer price already. Hopefully, this round will allow us to finally sell the Malaya power plant.”
The deadline for submission of tenders will be on April 23 this year at 12 noon. PSALM has also scheduled pre-negotiation conference on March 9 (Tuesday), “to discuss the issues and concerns that they (interested buyers) may have relative to the terms of the sale.”
The state-run company emphasized “only interested parties who submitted LOI (letter of interest) will be allowed to participate in the negotiated sale process for the Malaya thermal power plant.”