PSALM announces sale of Cebu asset
By Lenie Lectura – March 10, 2025
from Business Mirror
The Power Sector Assets and Liabilities Management Corp. (PSALM) raised P8.76 million from the sale of the 466 square meter property in Naga City, Cebu.
The proceeds from the successful sale of PSALM’s asset will be used to augment the funds needed for the settlement of the state firm’s financial obligations. As of end-January this year, PSALM’s financial obligations were reduced to P272.14 billion, down 78 percent from the 2003 peak level of P1.24 billion. Of the amount, P252.445 million is principal debt and P20.702 million from independent power producers’ lease obligations.
PSALM said in a statement on Monday that the local government unit (LGU) remitted the payment for the purchased asset early this month.
Naga City is planning to develop the purchased lot into an access road to facilitate the construction of a seaport, being part of the city’s ongoing reclamation project.
PSALM is in charge of liquidating the financial obligations of the National Power Corp. (NPC), including stranded debts and stranded contract costs, by implementing an efficient liability management program that conforms to the provisions of Republic Act No. 9136, the Electric Power Industry Reform Act (EPIRA).
The state firm said it will rebid the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex to optimize the asset and provide maximum value to its stakeholders.
The CBK hydro facilities are under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between independent power producer CBK Power Co. Ltd. and NPC, which will expire in 2026. These facilities include the 39.37-megawatt (MW) Caliraya HEPP in Lumban, the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants in Laguna.
