The Manila Electric Company (Meralco) on Monday, September 13, said it will be building a “new modern substation” facility in Paco, Manila.

In a disclosure, Meralco confirmed reports that it won the highest bid at P632.16 million for a Paco property of the Power Sector Assets and Liabilities Management Corporation (PSALM).

“The company intends to construct a new modern substation facility to serve the increasing demand of the City of Manila and replace the 66-year-old Tegen Substation after winning the bid for the Paco-Manila property of [PSALM] in Isla de Provisor, Manila,” Meralco said.

The property has a total area of 20,975 square meters and consists of eight noncontiguous lots. It was the site of the decommissioned Manila Thermal Power Plant and is located near the Meralco Tegen Substation along the Pasig River.

PSALM said Meralco will still be subject to post-qualification requirements. It added that the proceeds will be used to pay “stranded contracts costs and debts.” – Rappler.com