Philippines sells 650 MW Malaya oil-fired power plant for $65m

Fort Pilar Energy Inc. won the bid to privatise the power plant.

The Philippine’s Power Sector Assets and Liabilities Management Corporation (PSALM) has sold the Malaya 650 MW oil-fired power plant to Fort Pilar Energy Inc. for $65m (PHP3.1b).

Fort Pilar Energy offered the highest bid for the plant, surpassing the minimum offer price of $39m (PHP1.8b) that was set by the PSALM Board of Directors.

The sale of the MTPP is on an “As-Is Where Is” basis. It includes the 300-MW Unit 1 and the 350-MW Unit 2 as well as the underlying land, located in Pililla, Rizal.

“After several attempts to privatize MTPP the last two (2) years, we are very happy to have finally received financial bids substantially above our Minimum Offer Price. We are glad that this culminated in a successful privatization. PSALM definitely needs the proceeds of this privatization activity to pay for the remaining stranded contract costs and stranded debts. MTPP contributed to the losses of PSALM the past many years and so we really looked forward to selling it,” PSALM President and Chief Executive Officer Irene Besido-Garcia said.

Fort Pilar Energy has already announced plans to turn the Malaya plant into a ‘modern’ facility to boost the power situation in the country.