State-run Power Sector Assets and Liabilities Management Corp. (PSALM) said Tuesday it received P5.176 billion from the Department of Transportation (DOTr), representing the first tranche of its purchase price for the Sucat properties spanning 11 hectares.
PSALM said in a statement the payment represents the purchase price for the Sucat properties equivalent to 100 percent of the value of the titled land.
“This is a culmination of almost three years of coordination beginning January 2021 when DOTr formally confirmed its interest to acquire the Sucat Properties to be used for its North-South Commuter Railway (NSCR) project and PNR South Long-Haul projects,” PSALM said.
The NSCR Project is a 147-kilometer mass transportation railway system linking Region 3, the National Capital Region (NCR) and Region IV-A, while the SLH is a 639-km. railway system linking the NCR, Regions IV-A and Region V.
PSALM said it would use the proceeds from the sale of the Sucat properties to pay for the remaining stranded contract costs and stranded debts under the Electric Power Industry Reform Act of 2001 (EPIRA).
PSALM is mandated under the EPIRA to manage the assets and liabilities of National Power Corp.
The sale of the Sucat properties was facilitated through a “transfer to another government sgency” mode of sale as allowed under the agency’s approved modes of privatization on real estate assets.
The titled properties, lots 5-B-1 and 6-B-2 cover a total land area of 110,129 square meters, or a total of 11 hectares.
The second tranche of the sale covers the various land improvements and structure such as a guard house, perimeter fence and roadways.
PSALM said the closing date for the sale of the properties will commence when DOTr fully paid the purchase price for tranches 1 and 2.
The agency will turn over to DOTr the physical possession of the Sucat properties and the corresponding original owner’s duplicate copies of the TCTs and tax declarations upon closing date.