THE Power Sector Assets and Liabilities Management Corp. (Psalm) said it has reduced liabilities to P482.1 billion at end-September this year.
Of the amount, outstanding debts reached P270.26 billion, and Independent Power Producers lease obligations totaled P211.83 billion.
“As of September 30, 2017, [the] Psalm has total outstanding financial obligations of P482.1 billion [$9.44 billion equivalent at forex rate of P51.073 to $1]. Out of this amount, 78.03 percent are in foreign denominated currencies (72.21 percent USD, 5.82 percent JPY), which are severely affected by the peso devaluation,” said Psalm Officer in Charge Lourdes Alzona.
The collection of privatization proceeds, including payment for the privatized Sucat decommissioned plant and the generated funds from operation of remaining plants, remain Psalm’s funding sources.
Psalm, the agency tasked to manage state-owned power assets, is determined to reduce the debts of National Power Corp. (NPC), according to Alzona. Under the Electric Power Industry Reform Act (Epira), the Psalm is the government agency tasked to repay the debts of NPC.
“We are continuously identifying certain measures to avoid and/or minimize costs specifically on refinancing,” Alzona added. “Among these steps are stringent management of collectibles, sale of real-estate assets, disposal of other assets that entail high costs for maintenance.” The Psalm plans to sell some real-estate assets that could fetch an estimated P5 billion, according to Alzona.
“The sale would be staggered since we still have to sort out which can be sold, depending on the land title,” she said.
“There are areas that can be sold, such as the resort in Puerto Asul, while there are others that can’t be sold, such as the one in Bagac.”
This plan, she added, will be over and above the Universal Charge administration and other regular activities to support the liquidation of the Psalm’s financial obligations, that being its main mandate.