Government-owned Power Sector Assets and Liabilities Management Corporation (PSALM) said that it was able to reduce its debts in 2020, while cutting interest rates and improving collections.
In a statement, PSALM reported to the Department of Finance that it reduced its principal financial obligations by Php40.1 billion to Php381.9 billion at the end of last year from Php422 billion at the start of 2020. The reduction is roughly four times PSALM’s Php10.2 billion target.
“PSALM adjusted its currency mix by borrowing in peso while paying foreign currency obligations, thereby, lowering the ratio of foreign currency obligations and mitigating foreign exchange risks,” the statement read.
It likewise paid all interests and borrowing costs that matured last year totaling Php11.6 billion.
PSALM was also able to cut the average interest rate of its borrowings from an average of 5.07% per annum in 2019 to 4.17% per annum in 2020.
The agency also reported that it has collected deferred privatization proceeds amounting to Php38.7 billion, which composed of payments from Independent Power Producer Administrators and from the concession payments from the transmission business.
“PSALM was able to achieve a collection efficiency rate of 93.94% for power sales equivalent to Php12.895 billion from its power customers,” the statement continued.
The state-owned firm was also able to collect Php2.61 billion from overdue and delinquent accounts of power customers, which were absorbed from the National Power Corporation.
A total of Php16.7 billion in Universal Charges were also collected, achieving a 98% collection efficiency. It also hit 100% in disbursement efficiency from UC-Missionary Electrification Charge and the renewable energy developers, disbursing a total of Php3.55 billion.
PSALM disposed ten real estate assets for Php51.7 million, which includes the sale of its properties in Bohol and Cagayan in early December. It also raised another P26.5 million from retiring equipment and selling its scrap materials.
