PSALM to reduce debts this year

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) aims to reduce its maturing obligations by P24.63 billion and prepay its P19-billion obligations to the Bureau of the Treasury (BTr) this year.

In a report to the Department of Finance, PSALM said that after it exceeded the target reduction of its financial obligations last year, it now aims to collect P10.33 billion from power sales and P359 million from delinquent accounts this year.

It will also strive to maintain its 98 percent collection goal for the universal charge (UC) due from power distribution utilities and other electricity suppliers. Last year, it collected P16.69 billion from UC.

It likewise targets a 100 disbursement rate for the UC for missionary electrification and renewable energy development.

PSALM CEO Irene Besido said the firm would unload P948.93 million worth of real estate assets this year and pursue the privatization of power assets, including the Malaya Thermal Power Plant (MTTP) in Pililla, Rizal.

The firm reduces debts through the privatization of government-owned assets, collection of proceeds, and effective implementation of its liability management program.

PSALM is seeking offers anew for the 650-megawatt (MW) MTTP which will be bid out in April.

The government has been losing an average of P1.2 billion annually between 2010 up to 2019 in maintaining the plant.

Last year, the firm was able to reduce its financial obligations by P40.3 billion, four times over its 2020 target of P10.184 billion.

PSALM was able to bring down its financial obligations to P381.72 billion as of the end-December 2020, from P422.01 billion at the start of 2020.