Seeking to cut down debt in the energy sector, Power Sector Assets and Liabilities Management Corp., or PSALM, is hoping to sell or lease up to 10,000 hectares in 2015.
An agency under the Department of Energy, PSALM is in charge of the privatization of assets from the National Power Corporation (NPC), which includes its real estate properties.
Emmanuel R. Ledesma, PSALM's president and CEO, issued that the agency has designed a privatization program pending board approval. Titled “Strategic Plan for PSALM’s Real Estate Assets: Towards Debt Liquidation, Energy Security and Development,” the program details land and land holdings available to PSALM, as well as their potential as a source of revenue.
“Aside from the transmission business, power assets and independent power producer contracts which, for the past years, have been the focus of PSALM’s privatization activities, the real estate assets of PSALM are likewise a potential source of revenue for the liquidation of its financial obligations,” issued Ledesma.
“With an estimated 100 million square meters [100,438,788 square meters] of land in its portfolio, the plan hopes to aid in the further reduction of PSALM’s residual debt, as well as help in the government’s energy-security thrust and facilitate local and national development by identifying possible sites for future power facilities and/or new economic ventures," Ledesma disclosed.
Once given the green light, PSALM will start promptly upon the privatization efforts in 2015. As per the program, the real estate holdings can generate income by way of outright sale, lease and operation, or management and maintenance by another party.
According to the agency, their real estate assets include decommissioned power plants; lands not related to power generation; lands under land-lease agreements, which were previously offered for sale to new power-plant owners or successor generating companies (SGCs) but remain unsold; adjacent to or near privatized power plants or IPP plants; and lands adjacent to or near the remaining power plants and IPP plants of PSALM. Inalienable lands will not be included in the program, said Ledesma.