Napocor gets P2.7B from PSALM for SPUG
State-run National Power Corp. (Napocor) is set to receive P2.7 billion in funds from the Power Sector Assets and Liabilities Management Corp. (PSALM).
This will boost Napocor funds for the small power utilities group (SPUG).
At the sidelines of the First Philippine International BioEnergy Conference on Thursday, Napocor president Froilan A. Tampinco said the P2.7 billion was a reimbursement of portion of the advances it made for the payment of value added taxes for state-owned power plants.
“We have receivables from PSALM of about P3.8 billion. The PSALM board has already given its approval for the reimbursement of as much as P2.7 billion. These advances in VAT payments happened when the government-owned power plants were privatized. We paid for the VAT because we still had money at that time,” Tampinco said.
He said Napocor was hoping to receive the amount within the first quarter.
Separately, PSALM president and CEO Emmanuel R. Ledesma Jr. confirmed the plan to partially reimburse the advances in VAT payment made by Napocor, specifically for the sale of the Magat and Pantabangan-Masiway power plants.
“However, the release of the funds will depend on PSALM’s management of its cash position and Napocor’s requirement for the settlement of outstanding obligations,” Ledesma added.
The amount, Tampinco said, would the help Napocor meet the funding requirements of SPUG operations in far-flung areas.
For 2012, Napocor said it would need P19 billion to adequately address its capital expenditure requirements and maintain its operations in off-grid areas in the country.
The Congress, in December, had approved a budget of only P15 billion for Napocor.
Tampinco earlier said Napocor had asked Congress to reconsider the budget, saying that the P15 billion would not be enough to fund its capital expenditure requirements and operations.
“If the P4 billion will not be approved, we will be forced to defer some crucial capital expenditure projects,” Tampinco said.
“It’s either we forego certain projects, or if it is really necessary, we will have to file for a supplemental budget in 2012.”