PSALM to rebid real-estate assets after last auction deemed a failure

By Lenie Lectura -September 11, 2019
from Business Mirror

THE Power Sector Assets and Liabilities Management Corp. (PSALM) will rebid its real-estate assets (REAs) in Misamis Oriental, Cebu and Ilocos Norte after it declared last week’s auction a failure.

The state firm said there was only one bidder for each REAs in Barangay Aplaya, Jasaan, Misamis Oriental, and Toledo City, Cebu. No one submitted bid offers for the Laoag City asset. The auction was held last September 5.

“PSALM will rebid its REAs…as soon as it has adjusted the bidding schedule and sought the approval of the PSALM board to commence the second round of bidding,” said the state firm.

The land asset in Aplaya, Misamis Oriental, consists of 49 lots with a total area of about 155,504.00 square meters. The land asset in Toledo City, Cebu, consists of 21 lots with a total area of about 129,589.00 sq m. The asset in Laoag City has a total area of about 3,530 sq m.

These land assets used to be the location of the dismantled Aplaya Diesel Power Plant and the Cebu Diesel Power Plant. In 2009, PSALM privatized the power plant structures based on their scrap value and are now either on ground zero or with minimal structures left.

“PSALM is committed to privatize these land assets within 2019 but it is also important that the adjusted bidding timetable expediting the second round of bidding is in line with applicable laws,” PSALM President and CEO Irene Joy Besido-Garcia said.

Proceeds from the sale of these assets will be used to augment funds to settle PSALM’s assumed financial obligations.

In July, PSALM said it was expecting to raise nearly P740 million from the sale of the REAs.