By Danessa O. Rivera (The Philippine Star) | Updated November 25, 2015 - 12:00am
MANILA, Philippines - The Power
Sector Assets and Liabilities Management Corp. (PSALM) has settled its
financial obligations totaling P52.55 billion as of end-September.f
In a statement, the state-run firm
said the amount consisted of P19.53 billion in debts, P13.27 billion in
interest, and P19.75 billion in lease obligations to the independent power
producers (IPPs).
“This is solid proof that PSALM has
been effective and consistent in fulfilling its mandate to liquidate the
financial obligations it absorbed from the National Power Corp., amidst the
impact of currency fluctuations and other market forces,” PSALM president and
CEO Lourdes S. Alzona said.
PSALM said it was able to liquidate
its financial obligations because of its privatization program.
It said the payment for Power Barges
101, 102 and 103, which were turned over to their new owners in July this year,
was the latest addition to its privatization proceeds.
These assets were acquired by
Trans-Asia Oil and Energy Development Corp., the power generation arm of the
Phinma Group, for P420 million.
PSALM said the financial
obligations, inclusive of interest, it assumed from Napocor under the Electric
Power Industry Reform Act peaked to P1.63 trillion in end-2003 from P1.22
trillion in 2000 with the commissioning of new power plants and the devaluation
of the peso against the US dollar.
However, the state-run firm said its
commitment to liquidate its financial obligations and eventually reduce its
stranded debts through its Liability Management and Privatization Programs
trimmed by nearly 60 percent from its the peak in 2003.
Its financial obligations amounted to
only P674.04 billion as of the third quarter of 2015, inclusive of P108.82
billion interest.
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