by Myrna Velasco October 18, 2016
Debt-laden Power Sector Assets and
Liabilities Management Corporation (PSALM) will be “homeless” around Christmas
time following the expiration of its lease with the building that had served as
its home for the past 15 years.
This dilemma of the company was
already communicated to the Department of Energy (DOE) but there is no definite
go-signal yet what will be the next steps on the search for their next office
building – a sign that “Santa Claus” may not have been pleased with the company
as it still struggles in managing its monstrous debts of P245 billion.
PSALM executives noted that they are
already in limbo at this time, since to secure an office, they should now start
the bidding process for it – that alone will take time and may go beyond their
remaining two-month leeway.
Energy Secretary Alfonso G. Cusi
when asked on this matter had noted that he wants PSALM’s office to be housed
together with the other attached agencies of the DOE, “to save on costs for the
government.” He was originally eyeing that PSALM’s office be transferred at the
Philippine National Oil Company (PNOC) complex or at other energy company
compound.
PSALM said Energy Undersecretary
Felix William Fuentebella also met with them in August to tackle this specific
concern, but he has not returned to them yet with a concrete plan.
Fuentebella’s initial proposal will
be to corner an office space for PSALM at the National Power Corporation (NPC)
compound in Quezon City – but executives of both state-owned firms are saying
they could be “strange bedfellows” despite the fact that NPC is PSALM’s
precursor firm.
While still on stalemate, the energy
official said “I asked PSALM to present other options to the Board. A new
building was not allowed by the Board.”
Fuentebella added they are “looking
into any other office spaces, including other GOCC (government-owned and
controlled corporation) office space.”
PSALM still has remaining corporate
life of more than nine (9) years as the Electric Power Industry Reform Act
(EPIRA) afforded it corporate longevity of 25-years – that will lapse in June
2026.
The company’s immediate concern will
be to pay off debts amounting to R99 billion in the next three years – that
would be combination of bullet payments and regular amortization schedules.
It has pending application with the
Energy Regulatory Commission (ERC) for universal charge (UC) cost recoveries
for stranded debts and stranded contract costs for an aggregate amount of R77
billion, supposedly to cover its debt settlements.
The regulatory body, however,
already advanced word that it will strictly scrutinize these UC recovery
applications considering the impact that they will have on consumers’ bills.
On the side, the Departments of
Finance and Energy have also dangled the possibility of using the Malampaya
fund to totally wipe out PSALM’s debts – and for the government to also gain
window to shorten its corporate life.
But this will take time because a
legislative measure is needed to provide the legal ground for the application
of the Malampaya and other energy resource funds for that particular purpose.
No comments:
Post a Comment