By
Lenie Lectura- March 28, 2017
THE liabilities of the
Power Sector Assets and Liabilities Management Corp. (PSALM) were lower by over
P44.47 billion last year.
“As of end-2016, PSALM
was able to reduce its financial obligations by P44.47 billion, from the 2015
level of P550.81 billion, to P506.34 billion, broken down into P275.36 billion
in debts and P230.98 billion in BOT [build-operate-lease] obligations,” PSALM
Officer in Charge Lourdes Alzona said in a text message.
The reduction in the
level of financial obligations included bullet payments in 2016, totaling
P37.48 billion, made for the following bonds: $160-million Yankee bond;
P7.96-billion Salomon Brother Inc.; $478-million Citigroup; P23.20-billion
Deutsche Bank; and
P6.32 billion, Hongkong Shanghai tranche B-Deutsche Bank/HSBC.
P6.32 billion, Hongkong Shanghai tranche B-Deutsche Bank/HSBC.
Alzona said PSALM,
the agency tasked to manage state-owned power assets, is determined to reduce
the debts of National Power Corp. (Napocor).
Under the Electric
Power Industry Reform Act (Epira), PSALM is the government agency tasked to
repay the debts of Napocor.
“We are continuously
identifying certain measures to avoid and/or minimize costs, specifically on
refinancing. Among these steps are stringent management of collectibles, sale
of real-estate assets, disposal of other assets, which entail high costs for
maintenance,” she said.
PSALM, she added, plans
to sell real-estate assets that could fetch an estimated P5 billion.
“The sale would be
staggered since we still have to sort out which can be sold, depending on the
land title. There are areas that can be sold, such as the resort in Puerto
Azul, while there are others that can’t be sold, such as the one in Bagac,”
Alzona said.
This plan, she added,
will be over and above the Universal Charge administration and other regular
activities to support the liquidation of PSALM’s financial obligations, that
being its main mandate.
PSALM sourced internal
funds from operations of remaining plants and collection of privatization
proceeds to pay off Napocor’s debts.
The remaining
obligations would also be settled through privatization-collection proceeds.
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