State-run Power Sector Assets and Liabilities Management Corp., or PSALM, has paid some P12.85 billion in obligations of several rural electric cooperatives to the National Electrification Administration (NEA), local governments and other government agencies.
The amount represents more than 71 percent of the P18.07 billion in rural cooperatives’ debts assumed by PSALM, according to the 19th status report on the implementation of the Electric Power Industry Reform Act of 2001, or Epira law.
Of the amount paid, data from the report showed, the bulk of P12.776 billion was remitted to the NEA as of September 2011. The rest of the payment, or P76 million, went to local government units and other government agencies.
Of the amount paid to NEA, about 75 percent, or P9.612 billion, covered the rural electrification loans contracted by the said power cooperatives. About 15.6 percent, or P1.992 billion, covered mini-hydro loans while 9.10 percent, or P1.162 billion, was used to pay loans used for dendro-thermal facilities.
Payments intended for house wiring services accounted for only 0.07 percent, or P10 million.
PSALM is mandated by the Epira law (Section 60) to assume all outstanding financial obligations of electric cooperatives (ECs) to the NEA and other government agencies incurred as of June 26, 2001.
According to the PSALM website, its primary purpose is to finance the government’s rural electrification program. In fulfilling this mandate, PSALM assumed the cooperatives’ loans in partnership with certain government entities.
Under the Epira’s Implementing Rules and Regulations, the NEA is responsible for the “accounting of all outstanding financial obligations of electric cooperatives in accordance with existing accounting and auditing rules and regulations,” PSALM said.