The Power Sector Assets and Liabilities Management Corp. (PSALM) suffered a setback in its privatization drive after the bidding for its prime 39,698-square-meter Diliman property in Quezon City failed when none of the three interested firms submitted bids or paid participation fees. Holding a minimum price tag of P11.09 billion, the prime real estate asset represents a major financial opportunity for the state-run entity as it works to liquidate government power assets. PSALM now plans a second attempt next year, requiring a revised marketing strategy and new auction guidelines.
This failed auction carries significant corporate implications for PSALM, directly stalling its core legal mandate to monetize government-owned energy assets to settle the legacy liabilities of the National Power Corp. (NPC). With outstanding obligations standing at P222.26 billion as of June 2026, generating immediate cash flow through high-value real estate sales is critical to reducing debt service costs and avoiding prolonged fiscal reliance on state resources. Delaying the sale delays debt reduction, adding pressure on PSALM’s balance sheet at a time when major power generation assets, such as the Agus and Pulangi hydroelectric complexes, require substantial capital investment for output rehabilitation.
