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Brix Lelis - The Philippine Star
February 4, 2025 | 12:00am
MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has completed the bidding for its Maibarara property, securing close to a P480-million offer from the Yuchengco Group.
Yuchengco-led Maibarara Geothermal Inc. (MGI) was the lone bidder for the property, submitting an offer of about P473.17 million, which matches the minimum bid price.
With an area of around 58,911 square meters, the Maibarara property consists of three lots in Santo Tomas, Batangas and Calamba, Laguna.
“The two lots that MGI uses for its steam field and access road are actually under an existing lease agreement with PSALM. We submitted a bid to acquire these lots, including another lot for our outfield reinjection,” MGI corporate secretary Maria Carmela Hautea said.
This auction round, Hautea said, follows two previous unsuccessful biddings by PSALM.
While MGI’s bid has been accepted, PSALM said it is still subject to the completion of the post-qualification process to verify the accuracy and authenticity of the eligibility documents provided by MGI.
“The proceeds from the successful privatization of any PSALM asset will be used to settle the remaining stranded contract costs and stranded debts that PSALM had assumed from the National Power Corp. (Napocor),” it noted.
Created under the Electric Power Industry Reform Act, PSALM is mandated to take over the ownership of all existing generation assets of Napocor, independent power producer contracts, real estate and all other disposable assets.
Its primary purpose is to manage the sale and privatization of these assets in line with efforts to liquidate Napocor’s financial obligations in an optimal manner.
MGI, on the other hand, is a joint venture among PetroGreen Energy Corp., Phinma Energy and PNOC Renewable Corp.
The company currently operates the 20-megawatt Maibarara-1 and the 12-MW Maibarara-2 Geothermal Power Project in Santo Tomas, Batangas.
Maibarara-1 began its commercial operations in February 2014, said to be one of the fastest-built geothermal power plants in the country, while Maibarara-2 was commissioned in April 2018.
