PSALM trims debt to P416 billion as of October

Danessa Rivera (The Philippine Star) - December 13, 2019 - 12:00am

https://www.philstar.com/business/2019/12/13/1976539/psalm-trims-debt-p416-billion-october

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) trimmed its debt to P416 billion as of the end of October.

Latest data showed PSALM said this represented a 7.39 percent decline from the previous year.

“In 2019, we have been aggressively pursuing our mandates under EPIRA (Electric Power Industry Reform Act of 2001),” PSALM president and chief executive officer Irene Joy Besido-Garcia.

PSALM is the agency mandated by EPIRA to handle the sale of the remaining state-power assets and the financial obligations of the National Power Corp.

It managed to reduce its debts through the privatization of government-owned assets and the effective implementation of its liability management program.

This year, PSALM turned over the Bauang diesel power plant property to the provincial government of La Union, which purchased the asset for P524.21 million by way of a government-to-government transaction.

Last month, the agency sold its three idle properties for nearly P1 billion.

The real estate assets (REAs)—located in Barangay Aplaya, Jasaan, Misamis Oriental, Toledo City, Cebu and in Laoag City, Ilocos Norte—were sold to Panasia Energy Inc. for P934.72 million.

Prior to the passage of EPIRA, Napocor’s debt amounted to P830.7 billion in end-2000, but peaked to P1.24 trillion in 2003 after the peso dropped to 55.569:$1. 

Napocor incurred new debts to pay off maturing obligations.

Since it was established, PSALM has privatized 31 generation assets, including the Magat hydroelectric power oplant, Tiwi-Makban geothermal power plants, Pantabangan-Masiway hydroelectric power plant, Masinloc coal-fired thermal power plant and Batangas (Calaca) coal-fired thermal.

PSALM’s remaining generating assets include the Malaya thermal power plant in Rizal, the Agus I, II, IV to VII and Pulangi hydroelectric power plants in Mindanao, the Mindanao coal-fired power plant and some real estate properties.

It has roughly seven years left in its corporate life which ends in 2026.