PSALM mulls property conversion to ecozones

By Myrna M. Velasco – March 17, 2018, 10:01 PM
from Manila Bulletin

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) is undertaking “suitability study” on the proposed conversion of some of its real estate assets into economic zones.

The company divulged that it has been looking at various sites that it can transform into economic sites – that in turn could host array of industry locators as well as manufacturing firms.

“Converting some of PSALM’s real estate assets into economic zones is an important privatization undertaking,” the state-run firm surmised.

It further explained that “leasing out its land properties will provide it with a long-term opportunity to generate sustainable revenue while the government remains the property owner.”

The “suitability study” on the assets, according to PSALM, is being done in tie-up with the Philippine Economic Zone Authority (PEZA), the government-manned agency overseeing the state of affairs of ecozones.

The state-owned firm said it already has its focus on at least nine sites – geographically diversified in Metro Manila, Pampanga and Bataan.

“PSALM and PEZA entered into a memorandum of understanding (MOU) in December, 2017 to consummate the newly formed undertaking,” according to the company, with it noting further that a joint technical working group has been formed to jumpstart the profiling project and suitability assessment.

As emphasized, PSALM has already provided a list of assets to PEZA “for consideration in its initial phase of suitability assessment.”

On such collaboration, the state-run company is raising hope that it could be able to maximize “the utilization of its idle real estate assets.”

The privatization of the company’s real estate properties had been targeted to shore up the level of proceeds that it can still use to retire outstanding obligations.

On such business option being propounded, PSALM noted that it is looking at a two-pronged purpose: That aside from generating income streams which will augment its fund sources to pay off debts; it shall also be able to realize its “strategic goal of participating in local and national development.”

The state-run company asserted that its move to convert its land assets into ecozones “will help augment job opportunities and stimulate economic activities,” that in essence, could be an income-generating opportunity for the Filipinos.