Connect with us

Hi, what are you looking for?

Economy

Mounting bill for Malaya plant upkeep forces PSALM to seek negotiated sale

THE Power Sector Assets and Liabilities Management Corp. (PSALM) will seek approval to pursue a negotiated sale for the 650-megawatt Malaya Thermal Power Plant, citing unsustainable maintenance costs and following years of failed auctions to dispose of the rarely-used facility, the Department of Energy (DoE) said.

“PSALM shall proceed and get Board approval to immediately commence the negotiated process of privatization,” the DoE said in its 37th Electric Power Industry Reform Act (EPIRA) Implementation Status Report. The report covers developments and updates on the power industry operating under EPIRA between May to October 2020.

The DoE said it costs about P1.2 billion a year to maintain the plant, located in barangay Malaya, Pililla, Rizal.

“PSALM (seeks) to dispose of said assets due to increasing substantial losses in continuously maintaining it. Based on the losses for the last 10 years (2010 to 2019), the average annual net loss of PSALM… is P1.2 billion,” the DoE said.

In 2014, the DoE classified the plant as a “must-run unit” (MRU), defined by the Wholesale Electricity Spot Market as a generating unit that is required to operate only when required for energy security.

While PSALM was running Malaya as an MRU between 2015 to 2019, PSALM sustained average yearly net losses of P556.2 million, the DoE said.

In September, PSALM declared a failure of its third-round auction to sell the plant and the underlying land. The two pre-qualified bidders, Panasia Energy, Inc. and AC Energy Philippines, Inc., did not submit bids.

The auction floor price was set at P2.19 billion, less than half of the previous round’s floor price of P4.48 billion.

Last month, the PSALM sold via auction real estate assets in Bohol and Cagayan provinces. The winning bidder for PSALM’s Loboc, Bohol and Camalaniugan, Cagayan properties were Sta. Clara Power Corp. and Cagayan II Electric Cooperative, respectively.

PSALM is privatizing assets to settle financial obligations assumed from the National Power Corporation. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.