State-run Power Sector Assets and Liabilities Management Corp. (PSALM) issued the joint venture guidelines for the privatization of its real property assets.
“The JV guidelines is for PSALM’s privatization plan for certain real estate assets such as the Diliman property,” PSALM president Dennis de la Serna said.
PSALM manages the assets and liabilities of National Power Corp. as mandated by the Electric Power Industry Reform Act of 2001.
Under the guidelines, PSALM will have 50 percent or less of the outstanding capital stock of the joint venture (JV).
The JV will maximize the value of the agency’s assets or shall earn optimal proceeds for the government while providing reasonable returns for the Private Sector Partner (PSP).
It said the JV between PSALM and the PSP should not prevent other potential players from profitably entering into business ventures/markets.
The JV agreements allow sharing of profits and losses between PSALM and the PSP and enable the PSP to take over the infrastructure or development project.
“Ultimately, an objective assessment, such as feasibility/due diligence studies conducted by a third party, of what best serves the public interest should guide the decision of PSALM,” the guidelines said.
It said open and fair competition should be observed during the JV selection process and award.
