The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) last year collected P94.6 billion in revenues and reduced its debt by P27.2 billion on the back of more efficient liability management, the Department of Finance (DOF) said on Tuesday.
PSALM president Irene Joy Besido-Garcia reported to Finance Secretary Carlos Dominguez III that the state-run firm’s improved revenue take in 2019 was mainly contributed by power sales, proceeds from privatization and universal charges as well as collections from delinquent and overdue accounts.
Last year, PSALM was able to collect P11.8 billion or 93.5 percent of current power sales.
It also collected P4.3 billion in overdue and delinquent accounts “by offering borrowers flexible payment schemes through restructuring agreements or special payment agreements,” Garcia said, allowing the firm to exceed its P4.1-billion target.
“These flexible payment schemes encouraged entities and electric cooperatives to viably settle their outstanding obligations,” Garcia told Dominguez, who chairs PSALM.
Privatization proceeds last year reached P74.7 billion while universal charges for stranded contract costs and debt reached P6.5 billion.
Psalm also reduced its debt to P422 billion in 2019 from P449.2 billion in 2018. It surpassed its goal to cut debt by P15.2 billion last year. —BEN O. DE VERA