THE Power Sector Assets and Liabilities Management Corp. (Psalm) has successfully privatized its Paco-Manila Property, through the successful conduct of its negotiated sale process.

The Manila Electric Company (Meralco) was declared the winning party on Friday after submitting the highest offer amounting to P632,16 million, which was higher than the Psalm Board-approved Minimum Offer Price of P527.08 million.

"We are very happy that after several attempts to privatize this Paco-Manila Property, we finally completed today the privatization process with a financial bid that is significantly above the Minimum Offer Price set by the Psalm Board. We did not give up in trying to find the right buyer willing to pay the best price to the government. The proceeds of this privatization activity will be used by Psalm to pay the remaining stranded contract costs and stranded debts," Psalm President and Chief Executive Officer Irene Besido Garcia said in a statement.

Psalm said that the results of the negotiated sale will be subject to a post-qualification process to ensure that the winning negotiating party indeed meet all the financial and legal requirements indicated in the negotiation procedures.

The other negotiating party was Toplis Solutions. During the evaluation of the eligibility documents, it was determined that Toplis was unable to include one of the required documents, while another document it submitted did not follow the mandated format and wordings.

The Paco-Manila Property consists of eight separate non-contiguous vacant lots, located at Isla de Provisor, Paco, Manila. It has an indicative area of 20,975 square meters. It is situated near the Meralco Tegen Substation which houses various electrification equipment.

Representatives from the Office of the City Mayor in Manila, Commission on Audit, and the National Power Corp. witnessed the proceedings.