Filipino firm Panasia Energy Inc. was declared to have the ‘winning offer’ in the sale of the real estate assets in Limay, Bataan pwned by state-run Power Sector Assets and Liabilities Management Corporation (PSALM).
At the bidding on Tuesday, Nov. 9, PSALM announced that Panasia Energy offered P1.023 billion, roughly four times higher than the P250.425 million minimum bid price prescribed by the PSALM Board for that asset divestment.
PSALM similarly noted that the highest offer it cornered was five times higher than the valuation set by the Land Bank of the Philippines at P209.286 million.
Panasia Energy is a subsidiary of Millennium Energy Inc. and it has operating power plant portfolios -- including the 540-megawatt oil-fired combined cycle generating facility in Limay, Bataan; and the 100MW gas turbine plant in Navotas City in Metro Manila.
The sale of the Limay property initially lured the participation of at least seven interested parties, but on the final submission of tenders, only four firms braced the contest for that prime government asset – and this included Pan Pacific Renewable Power Phils Corp. Fort Pilar Energy Inc., and Ms Laylani Latina De Vera, an individual bidder; while the rest have notified PSALM on their decision not to join the bid process; and another one did not appear during the final submission of offers.
Atty Irene Besido-Garcia, president and CEO of PSALM, qualified that “the winning bid is still subject to the post-qualification process to verify the accuracy and authenticity of the documents and information submitted.”
With the ‘desirable outcome’ that PSALM has pulled off in the Limay assets sale, Garcia asserted “this shows that doing a genuine competitive public bidding truly provides a clear advantage for the government.”
The company chief executive considered that latest asset divestiture as “a major boost for PSALM’s efforts to raise privatization proceeds, which will be utilized for the payment of the liabilities that PSALM absorbed from the National Power Corporation.”
The property is seen ideal for either residential development or industrial ventures, primarily for energy-related projects given its proximity to the Limay substation.
PSALM has been accelerating the privatization, not just of the remaining power plant facilities and supply contracts of NPC, but also its real estate asset so it can raise much-needed cash to settle the outstanding financial obligations of its precursor-company.
The corporate life of PSALM under the Electric Power Industry Reform Act (EPIRA) will just be until 2026, but a legislative proposal to extend its longevity has already been proposed in Congress.