State-run Power Sector Assets and Liabilities Management Corp. said Wednesday it received P3.123 billion from Belgrove Power Corp., representing the entire purchase price for the 650-megawatt Malaya Thermal Power Plant and its land.
PSALM also received from Belgrove the amount of P1,062,156,423.99 as payment for the fuel inventory remaining in the MTPP.
PSALM and Belgrove executed the deed of absolute sale concluding the sale transaction for the MTPP and its land.
PSALM president and chief executive Irene Besido-Garcia thanked Belgrove for the timely remittance of the purchase price and the payment for the fuel inventory.
“The completion of the sale and the turnover of the Malaya Power Plant to Belgrove mark a major milestone in PSALM’s institutional history as PSALM has been trying to privatize this asset for several years already. The amount of PhP4,185,656,423.99 will be used by PSALM to settle the remaining financial obligations that PSALM absorbed from the National Power Corp. This is a clear testament to PSALM’s commitment to exert all efforts necessary to privatize and pay for the NPC obligations," Garcia said.
The purchase price paid by Belgrove is substantially higher than the minimum bid price set by the board of directors of PSALM for the MTPP, which was P1,845,222,000.00. With the completion of the turnover of the MTPP, Belgrove is now authorized to conduct an extensive assessment of the MTPP and pursue all its plans for the plant.
Speaking on behalf of Belgrove, Joseph Omar Castillo said the company was very excited to operate the Malaya Power Plant.
"We intend to undertake the necessary repairs as soon as possible so that the Malaya Power Plant can resume operations," Castillo said.
Once the MTPP is repaired by Belgrove, it can supply electricity to the Luzon grid and help ensure sufficient electricity supply in anticipation of the upcoming 2022 national elections.