Government-run Power Sector Assets and Liabilities Management Corporation (PSALM) has already collected Php653.218 billion out of the Php911.04 billion in proceeds from the divestment of National Power Corporation’s (NAPOCOR) power generation and transmission assets.
The figure posted as of end-March will just leave PSALM with a balance of Php258 billion and will be short by around Php100 billion to fully cover its remaining liabilities of around Php358 billion as of end-May.
PSALM was established by virtue of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) in 2001 mainly to privatize NAPOCOR’s assets. Its 25-year corporate life will end in 2026.
PSALM’s liabilities are also expected to further grow because bulk or around 63% of its outstanding financial obligations are in US Dollars, which has been appreciating against the Philippine Peso.
Regarding the sale proceeds already remitted, Php164.069 billion worth of revenues from the privatization of NAPOCOR power generation assets had been fully paid, based on PSALM documents.
Meanwhile, the asset divestments that still have balances are those regarding the National Grid Corporation of the Philippines’ concession fees for the privatization of the transmission assets; as well as on the capacity payments of Independent Power Producer (IPP) Administrators for the privatized power supply contracts.
For the 25-year concession contract of the transmission facilities Php189.091 billion of the expected Php260.543 billion in total proceeds had already been paid. As for the privatized IPP contracts, collections have reached Php296.129 billion compared to total proceeds amounting to P482.499 billion.
Earnings from the decommissioned facilities at was Php660 million, as well as other NAPOCOR-divested assets worth Php3.269 billion had also been fully settled, as reported by PSALM.
As for remitted revenues, PSALM noted that the total collections for the first quarter, were solely used to liquidate Php700.94 billion in financial obligations, which were augmented by interest in income on placements and funds from power receivables.
Most of the divestments happened during the administrations of former Presidents Gloria Macapagal-Arroyo and Benigno Aquino III, while the recent sale of the 650-megawatt Malaya Thermal Power Plant (MTPP) was the only major successful privatization of outgoing Pres. Rodrigo Duterte. The MTPP deal, in which Zamboanga-based Fort Pilar Energy won the bid for Php3.12 billion, has yet to be finalized.