06 Mar 2018
As part of an initiative to help boost the development of economic zones in the country, the Power Sector Assets and Liabilities Management Corporation (PSALM), through the Philippine Economic Zone Authority (PEZA), has started the suitability study of its real estate assets for conversion into economic sites, with nine sites situated in various locations in Metro Manila, Pampanga, and Bataan already covered for further assessment.
PSALM and PEZA entered into a memorandum of understanding (MoU) in December 2017 to consummate the newly formed joint undertaking. This will enhance collaboration towards utilization of PSALM’s idle real estate assets. Institutional arrangements will be determined following the results of the suitability study.
Converting some of PSALM’s real estate assets into economic zones is an important privatization undertaking. Leasing out its land properties will provide it with a long-term opportunity to generate sustainable revenue while the government remains the property owner.
A two-pronged purpose is expected to be achieved from this business option. For one, PSALM will be able to generate income streams which will augment its fund sources to pay-off its assumed financial obligations. Two, it will also realize its strategic goal of participating in local and national development. Aligned with PEZA’s mandate, PSALM’s move to convert its land assets into ecozones will help augment job opportunities and stimulate economic activities, thereby, providing more income for Filipinos.
PSALM provided a list of assets to PEZA for consideration in its initial phase of suitability assessment. A joint technical working group has been formed to jumpstart the profiling project and suitability assessment.
Corporate Communications Division