The Power Sector Assets and Liabilities Management (PSALM) Corporation has reported that it reduced its financial obligations by PHP 13.4 billion in 2025. This brings its outstanding balance down to PHP 260.6 billion as of December 31.

The reduction was supported by the receipt of PHP 36.3 billion from the sale of the Caliraya, Botocan and Kalayaan (CBK) Hydroelectric Power Plants, along with collections from the concession of transmission assets and the administration of Independent Power Producer Administration (IPPA) contracts. The corporation also posted a 92.28% collection efficiency, roughly equal to PHP 15.88 billion in power sales collections.

The figure marks a decline from PHP 274.0 billion recorded at the close of 2024. During the year, PSALM paid PHP 20.0 billion in interest and other charges and remitted PHP 9.0 billion in dividends to the National Government.

PSALM was created to manage and privatize power assets and liabilities inherited from the National Power Corporation as part of reforms in the energy sector. Its mandate includes settling legacy debts through privatization proceeds and structured asset and liability management.

“These achievements strengthen PSALM’s financial position geared towards the completion of its mandate within its extended corporate life in support of the Philippine Energy sector. PSALM remains fully committed to further reducing its obligations through sustained privatization efforts and innovative asset and liability management strategies,” said PSALM President and CEO Dennis Edward A. Dela Serna.

Since its peak debt level of PHP 1.24 trillion in 2003, PSALM has reduced its financial obligations by PHP 980.0 billion, which is by 79%. To date, it has generated PHP 959.6 billion in privatization proceeds, with PHP 888.7 billion already collected.

Continued debt reduction is seen as  a critical part of stabilizing state-linked power obligations and supporting the broader financial restructuring of the Philippine energy sector.

As PSALM advances toward completing its privatization mandate, how will further reductions in legacy power debt influence the long-term financial structure of the country’s electricity sector?

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