PSALM to set new bidding for Malaya valuation consultant

By Myrna M. Velasco – January 16, 2019, 10:00 PM
from Manila Bulletin

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) will schedule another bidding on the consultancy services that will draw up the valuation and reserve price for the 650-megawatt Malaya power facility’s targeted privatization this year.

PSALM President Irene Joy B, Garcia said the January 7, 2019 bidding for the consulting services was declared a failure due to lacking documentary submissions of the bidders.

“We need to set another bidding and adjust the deadlines to give enough time to the bidders to secure the necessary documents,” she said.

The company chief executive noted that the bids and awards committee (BAC) will officially report to her this week the outcome of the last bidding – and succeeding steps will have to be decided correspondingly following that. “The bidders were not complete with the documentary requirements so the financial bids were not opened,” Garcia expounded.

She stressed that given the long holidays during the Christmas season, it was explicable enough that the bidders were not able to secure all the documents that they shall be needing for the consulting services’ auction.

The work of the consultant for this phase is paramount because it will give the government the price reference as to what scale it shall be selling the thermal power plant sited in Rizal province.

As prescribed by PSALM, the consultant being tapped shall have comprehensive knowledge and expertise not just on power plant operations but also on real estate appraisal because the facility’s site shall also be included in the sale package.

The asset-seller firm is targeting the divestment of the Malaya plant this year on “as is, where is basis” so it can fetch additional proceeds that it can utilize to settle maturing obligations.

Beyond its assets privatization mandate, PSALM has similarly been assigned that critical role of fully expunging power sector debts which was still at a whopping P461 billion as of last year.