10 Nov 2021
On 09 November 2021, the Power Sector Assets and Liabilities Management Corporation (PSALM) declared a successful public bidding for its Limay Asset. The highest bid price received by PSALM was from Panasia Energy Inc. (Panasia) amounting to PHP1,023,159,332.00.
The winning bid of Panasia surpassed by almost five (5) times the valuation of the Limay Asset done by the Landbank of the Philippines at PHP209,286,945.00 and it was four (4) times the minimum bid price approved by the PSALM Board at PHP250,425,045.00. The winning bid is still subject to the post qualification process to verify the accuracy and authenticity of the documents and information submitted.
PSALM President and Chief Executive Officer, Atty. Irene Besido Garcia, stated that “[W]e are very pleased with the result of the privatization process for the Limay Asset. This shows that doing a genuine competitive public bidding truly provides a clear advantage for the government. The bid of PHP1,023,159,332.00 is substantially much higher than the market valuation. This is a major boost for PSALM’s efforts to raise privatization proceeds, which will be utilized for the payment of the liabilities that PSALM absorbed from the National Power Corporation.”
At the beginning of the process, there were seven (7) interested bidders that signified their intent to participate in the bidding and remitted to PSALM the participation fee. Nearing the bid submission date, two (2) bidders, Sta Clara International Corporation and Cordillera Hydro Corporation, formally notified PSALM of their decision not to further participate in the bidding process while another bidder, Bellagio Holdings, Inc., did not appear during the bid submission date. The remaining four (4) bidders, namely, Pan Pacific Renewable Power Phils. Corp., Fort Pilar Energy, Inc., Panasia Energy Inc., and Ms. Laylani Latina De Vera, an individual bidder, submitted their bid documents before the bid submission deadline and joined the public bidding.
There were voluminous documentations that were required as part of the bid submission. Thus, the proceedings for the evaluation of the bids of the bidders ran for almost 4 hours. The proceedings utilized a hybrid arrangement where some of the participants and observers were physically at the PSALM office in Vertis North, Quezon City, while others opted to participate through video conferencing. Social distancing and other health protocols were strictly observed during the process.
The Limay Asset, located in Brgys. Luz and Kitang II in Limay, Bataan, covers an estimated area of 139,054 square meters, more or less, divided into fourteen (14) lots. Due to its proximity to the Limay Substation, these assets are ideal for industrial development and energy-related projects. Portions of these assets are also suitable for residential development as some areas are generally flat with rolling portions.
Corporate Communications Division