State-run Power Sector Assets and Liabilities Management Corp. said Tuesday the Privatization Bids and Awards Committee asked interested parties to join the negotiated sale process and submit offers for the privatization of the 650-megawatt Malaya Thermal Power Plant and its land.
PSALM president and PBAC chairman Irene Garcia said the minimum offer price for the assets in Pililla, Rizal in the negotiated sale is P2,007,780,000.
“A financial offer submitted lower than the minimum offer price shall be rejected outright,” Garcia said.
PSALM declared a failure of the third round of public bidding on Sept. 23 for the privatization of the MTPP and its underlying land after none of the pre-qualified bidders submitted a bid.
The minimum bid price for the MTPP in the third round of public bidding was placed at P2,188,400,000, which was substantially lower than the minimum bid price during the second round of public bidding on Nov. 22, 2019 at P4,481,796,017.00.
Meanwhile, PSALM said an interested party for the negotiated sale should submit a letter of interest to the PBAC no later than 3 p.m. on Oct. 22.
Only interested parties that submitted an LOI would be allowed to participate in the negotiated sale process for the MTPP, it said.
PSALM said interested parties that submitted the LOI should be the one to participate in the negotiated sale process, submit an offer and enter into the pertinent agreements.
“Those who were previously disqualified from participating in other bidding or negotiated sale activities of PSALM by reason of fraudulent acts, or those who committed fraud or breach in the provisions of any agreement with PSALM are also disqualified to participate in this negotiation,” it said.
PSALM set the due diligence for the negotiated sale from Oct. 6 until two business days prior to the submission deadline.
The pre-negotiation conference is slated on Oct. 23, while the offer submission deadline is on Nov. 16.