State-run Power Sector Assets and Liabilities Management Corp. said the Philippine Economic Zone Authority began studying whether the former’s idle real estate assets can be converted into economic zones.
PSALM said its real estate assets in nine sites across Metro Manila, Pampanga and Bataan were being assessed for suitability as economic zones.
It said this was a part of an initiative to help boost the development of ecozones in the country.
PSALM and Peza signed a memorandum of understanding in December 2017 to enhance collaboration towards utilization of PSALM’s idle real estate assets.
The agency said institutional arrangements would be determined following the results of the suitability study.
“Converting some of PSALM’s real estate assets into economic zones is an important privatization undertaking. Leasing out its land properties will provide it with a long-term opportunity to generate sustainable revenue while the government remains the property owner,” PSALM said.
PSALM was created under the Electric Power Industry Reform Act of 2001 to manage National Power Corp.’s assets and liabilities.
PSALM said a two-pronged purpose was expected to be achieved from the agreement with Peza. PSALM said it would generate income streams to augment its fund sources and pay off assumed financial obligations.
It said this would also help the agency realize its strategic goal of participating in local and national development.
“Aligned with Peza’s mandate, PSALM’s move to convert its land assets into ecozones will help augment job opportunities and stimulate economic activities, thereby, providing more income for Filipinos,” it said.
PSALM provided a list of assets to Peza for consideration in its initial phase of suitability assessment. A joint technical working group was formed to jumpstart the profiling project and suitability assessment.
PSALM has real estate assets with an aggregate land area of around 100 square kilometers, consisting of about 6,160 lots around the country, although the agency said the figure could change with the “database cleanup.”
PSALM said around 60 percent of total land area is located in Luzon, 39 percent in Mindanao and the remaining 1 percent in the Visayas.
The agency already formulated a strategic plan to liquidate the said real estate assets while generating the highest financial return to pay of PSALM’s obligations.