Manila Times.net
Published : Thursday, December 08, 2011 00:00 Written by : Euan Paulo C. Añonuevo, Reporter
State-run Power Sector Assets and Liabilities Management Corp. (PSALM) plans to raise funds early next year to bridge a projected deficit in its financing requirements.
Emmanuel Ledesma Jr., PSALM president, said it has to raise P85 billion next year because of a shortfall in its approved budget.
“PSALM is projected to incur a deficit of P85 billion in 2012,” he said. PSALM is the agency mandated under the Electric Power Industry Reform Act of 2001 to oversee the privatization of National Power Corp.’s assets and the management of its debts.
The government-owned power firm’s obligation stands at about $16.5 billion.
Ledesma said PSALM is in talks with the Department of Finance on how to raise the agency’s funding requirements next year.
Among the options is “on-lending with the national government or [the] issue [of] regular peso notes,” he said.
PSALM, however, may not need to incur additional borrowings should prepayments from the National Grid Corp. of the Philippines (NGCP) materialize.
NGCP is the private company that won the right to operate and manage the country’s transmission facilities for $3.95 billion.
Ledesma earlier said that PSALM had been evaluating the terms for the prepayment of the privatization proceeds from NGCP.
The proposed advanced payment would allow PSALM to meet its cash flow requirements and avoid incurring additional loans for payment of Napocor’s maturing obligations.
“On the NGCP receivables, discussions with NGCP are still ongoing,” Ledesma said.
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