State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has cut its financial obligations by Php 195.4 billion by the end of the Duterte Administration.
In a statement, PSALM said that its financial obligation is now at Php 342 billion, down by a third from the Php 538 billion in 2016 when former president Rodrigo Duterte took office.
As of June 30, PSALM was able to cut its debt down to Php 264.4 billion from Php 306.8 billion in 2016. Its lease obligations from independent power producers (IPPs) went down to Php 78.2 billion from Php 231.2 billion.
“Moreover, PSALM paid interest and borrowing costs amounting to PHP108.6 billion during the same period,” PSALM president and CEO Irene Joy Garcia said in a statement.
PSALM is a state-owned entity that’s in charge of the privatization and sale of the power generation assets previously owned by the government. It also handles the outstanding obligations from the National Power Corp., including its loans, bond issuances, securities, and other instruments.
PSALM is also in charge of collecting universal changes (UC) for missionary electrification, as well as the environment and watershed rehabilitation and management which are billed to electricity consumers monthly.
The state-owned company was able to maintain a 98.21% average universal charge collection efficiency. PSALM’s collection for UC amounted to Php 133.05 billion from July 2016 to March 2022.
Garcia noted that PSALM’s biggest hurdle to date is the “impact of volatile exchange rate movement on its financial obligations. A portion of PSALM’s loans is dollar-denominated.
Last week, the Philippine peso fell to Php55:$1 for the first time in 17 years.