Psalm to trim debt stock by P32B next year
State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to trim its financial obligations by P31.87 billion, or about 9 percent of its current burden, by 2023.
In an email to the Inquirer, PSALM said it was targeting a reduction of both debt and lease obligations to independent power producers (IPPs).
The outstanding financial obligation of PSALM amounted to P340.75 billion as of November 2022, a substantial decrease from a peak of P1.241 trillion incurred in 2003.
PSALM had reported its total revenues at P79.5 billion in 2021, up 27 percent from P62.4 billion recorded a year ago.
Operating expenses increased by 2 percent to P71.2 billion while overhead expenses accounted for less than 5 percent of total income in the previous year.
Under the Electric Power Industry Reform Act, PSALM is mandated to liquidate all the existing generation assets, IPP contracts, real estate and other disposable assets of National Power Corp. (Napocor).
It has been selling such power assets to settle all the liabilities and obligations it had assumed from Napocor.
On the block
Currently, PSALM is auctioning off the 165-megawatt (MW) Casecnan Hydroelectric Power Plant located in Brgy. Villarica in Pantabangan, Nueva Ecija on an “as-is, where-is” basis.
So far, 13 entities have expressed their interest to acquire the hydro facility, a “run-of-river” type of plant with limited impounding area.
Last year, PSALM was able to sell the 650-MW Malaya thermal power plant for P3.18 billion, which includes the facility’s remaining fuel inventory.
It likewise raised P2.7 billion from the sale of 31 lots, composed of 18 lots targeted for disposal in 2021, 13 that were undisposed in 2020 and one lot that was not part of the target.
Implementing these strategies, according to PSALM, have enabled it to yield a net surplus of P8.9 billion in 2021, up by 293 percent from its net surplus of P2.3 billion in 2020. INQ
