The prospective bidders in the 650-megawatt Malaya thermal power plant had been trimmed to two companies, from originally 4 to 5 companies, but state-run Power Sector Assets and Liabilities Management Corporation (PSALM) said it is still keen on divesting the facility via a negotiated deal by May 7 this year.

In the roll of remaining prospective takers are AC Energy Corporation of the Ayala Group and Fort Pilar Energy Inc., according to PSALM. The plant has two units – with unit 1 having an installed capacity of 300 megawatts; and unit 2 is of 350MW capacity.

The asset-seller firm said the two companies have “submitted all their documentary requirements within the deadline given, and these requirements were found to be in order and acceptable.”

The approved minimum offer price (MOP) for the negotiated sale of the Malaya power plant had been reduced to P1.845 billion – a valuation that was already pared several times from when the asset was first auctioned in 2019.

PSALM emphasized it slated the offer submission and evaluation proceedings on May 7 “as part of the third round of negotiated sale process” for the thermal plant which is sited in Pililla, Rizal.

The government-run company reiterated that the sale will cover “five lots underlying the entire power station and other plant accessories, with an estimated area of 246,459 square meters.”

It further noted that the assets are being sold by PSALM on “as is, where is” basis; hence, that could be the basis of valuation of the prospective buyers.

Presently, the Malaya thermal plant is being operated and dispatched as a must-run-unit (MRU) by system operator National Grid Corporation of the Philippines (NGCP), given the tight supply conditions being experienced again in these summer months.

But once the asset is sold, PSALM specified that the facility will no longer be depended upon as MRU and its use will already rest solely on the discretion of the buyer.

Previously, interested bidders who looked at the Malaya asset had intimated that the facility’s value will generally be on the site – especially if the buyer will be targeting to develop another power installation in the area.

On PSALM’s part, its main interest on unloading the Malaya power facility would be to raise proceeds that it can utilize to pay off maturing financial obligations.

The state-run firm’s corporate life will just be until 2026, but until this time, it still has over P364 billion worth of transferred liabilities from National Power Corporation, that it will need to settle in the next five years.