PSALM’s sale proceeds now at P338.7 billion

By Myrna M. Velasco – Updated September 2, 2019, 10:44 AM
from Manila Bulletin

The balance of privatization proceeds that state-run Power Sector Assets and Liabilities Management Corporation (PSALM) still bound to collect now just hovers at P338.73 billion, which is manifestly lower than the remaining power sector liabilities at P436.3 billion as of first quarter this year.

For the multi-year divestments of NPC power assets, PSALM logged total proceeds of P910.16 billion – and of that, P571.43 billion had already been remitted – including interest payments on deferred portion of the concession fees for the privatized transmission assets.

Essentially, it has been shown that if liability management will just fully depend on the power assets’ privatization proceeds, PSALM is short by almost P100 billion now on total cash it needs to settle outstanding financial obligations.

With privatization of the remaining assets not really moving as they had been anticipated, the state-run company is seen in a bind as to how it can raise additional money to wipe out remaining liabilities – especially so since its corporate life is only limited until 2026.

There are still power assets on PSALM’s portfolio that can be privatized moving forward – but the company has been hurdled with array of concerns, including legal setbacks on ownership of some assets; and the other would be ascertaining divestment mode that could hike the assets’ privatization values.

Data from the company would show that the remaining proceeds yet to be fetched from the concession fees of the privatized transmission facilities had been down to P84.48 billion – and the bulk of P182.32 billion had already been remitted to PSALM.