THE Power Sector Assets and Liabilities Management Corp. (Psalm) will conduct a feasibility study on the sale of the Diliman property of the National Power Corp. (Napocor) in Quezon City next month, according to its top official.
In an interview on Monday, Psalm President and Chief Executive Officer Irene Joy Garcia said PricewaterhouseCoopers (PwC) Philippines bagged the contract for the P5.98-million study.
Psalm hopes to issue the notice to proceed (NTP) to PwC Philippines by December 13 and they have 120 days from the date of the NTP issuance to work on the study, she added.
Garcia said the state-run corporation had initiated the procurement process for the property assessment as prescribed by Republic Act 9184 or the “Government Procurement Reform Act.”
The awarding of the contract is subject to post-qualification activities.
“At the moment, we’re doing post-qualification activities,” Garcia told reporters.
“When you start bidding out to get say, for instance, a private partner to invest in the project, you need to be able to see what is the minimum [amount]. After we do the feasibility study, then we can already come up with a privatization action plan for that,” she said.
The study will determine the property’s marketability, validate the cost of investment and identify appropriate privatization schemes to attract prospective developers.
Earlier, Psalm launched a contest to come up with the best and most energy-efficient conceptual designs that could be used as basis for the master-planning and redevelopment of a property in Quezon City’s central business district.
WTA Design Studio emerged as the winner, which through the The East Grid design, aims to develop Psalm’s 5.195-hectare Diliman property into a mixed-use office development integrated with wellness and commercial elements, and combined with energy efficient systems and innovative, sustainable design ideas.
Proceeds from the sale of this asset will be used to reduce Psalm’s outstanding financial obligations, which stand at P416 billion as of end-October, significantly lower than the 2003 level of P1.24 trillion.
Under RA 9136 or “Electric Power Industry Reform Act of 2001,” Psalm is mandated by law to sell the remaining assets and settle the financial obligations of Napocor.