PSALM commits to sell Manila thermal plant

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has committed to start privatizing the Manila thermal plant property this year to further reduce its liabilities.

In a statement, PSALM said it is entirely committed to fulfilling its mandate of privatizing its remaining assets.

The statement was issued after National Association of General Managers of Electric Cooperative slammed PSALM for passing the blame on the Energy Regulatory Commission for its liabilities.

PSALM said it does not have ballooning debts.

As of the end of June, PSALM’s remaining principal debt stood at P246.73 billion, while the remaining obligations under its independent power producer contracts amounted to P202.7 billion.

PSALM successfully reduced the financial obligations by 64 percent to P449.4 billion.  It is the agency mandated by the Electric Power Industry Reform Act (EPIRA) of 2001 to handle the sale of the remaining state-power assets and the financial obligations of Napocor.

Since then, PSALM has already generated privatization proceeds from assets amounting to P918.5 billion.

Of this amount, PSALM had already collected P545.2 billion, while the balance is based on a payment schedule.

Its recent accomplishments include the privatization of over 900 hectares of real estate power assets, the Power Barge 104 and the sale of the decommissioned Sucat thermal power plant.