PSALM still has P466 billion to be collected

Published December 31, 2016, 10:01 PM By Myrna M. Velasco

http://business.mb.com.ph/2016/12/31/psalm-still-has-p466-billion-to-be-collected-from-privatization-proceeds/

State asset-seller Power Sector Assets and Liabilities Management Corporation (PSALM) still has US$9.36 billion (or P466.22 billion at current peso-dollar exchange rate) worth of privatization proceeds to collect which may be utilized to pare its debts and other financial obligations.

The company emphasized that from its accomplished privatization mandate it fetched “a total of US$19.891 billion,” and of the entire proceeds, “actual collection amounted to US$10.531 billion,” as of second quarter of 2016.

Based on data from the company, it has yet to receive payments at aggregate US$6.899 billion from the independent power producer administrators (IPPAs) of the privatized power supply contracts of the National Power Corporation.

The total proceeds from IPPA appointments for the supply contract-assets had been at $9.957 billion and only $3.059 billion had been remitted so far, according to PSALM.

The other major collectibles of the state-run company would be on the balance for the 25-year concession agreement being the privatization scheme for the National Transmission Corporation’s (TransCo) assets.

PSALM noted that concessionaire National Grid Corporation of the Philippines (NGCP) still has a balance of $2.462 billion, following its prepayment of equivalent $1.5 billion three years ago.

Total proceeds from TransCo’s privatization was pegged at $6.383 billion and of that, $3.921 billion had already been paid by the Sy-led concessionaire firm.

For divested generating assets and decommissioned plants, there had already been full payments of $3.547 billion and $4.0 million, respectively.

PSALM stressed that of the $9.813 billion worth of proceeds already utilized, “$9.709 billion or 98.94 percent was used for the liquidation of financial obligations.”

It added that “the difference between the total amount collected and total utilization in the amount of $0.718 billion is placed in temporary investments while awaiting utilization.”

As of mid-2016, PSALM debt prepayments had been placed at $1.298 billion; regular debt service at $5.783 billion; and lease obligations for build-operate-transfer (BOT) contracts at $2.628 billion; while its privatization-related expenses totaled $104 million; and allotment for operating expenses of TransCo at $1.0 million.