PSALM cuts debt by ₧18.39B in Q1
BY LENIE LECTURA – APRIL 18, 2023
from Business Mirror
The Power Sector Assets and Liabilities Management Corp. (PSALM) trimmed its debts by P18.39 billion to P328.37 billion in the first quarter.
At end-March, the state firm’s principal debt stood at P265.14 billion while lease obligation reached P63.23 billion.
Earlier, PSALM said its debts were reduced to P346.76 billion by the end of 2022, representing a reduction of P8.44 billion from the P355.25 billion level at the start of the year.
Under the Electric Power Industry Reform Act, PSALM is mandated to liquidate all power generation assets, independent power producer contracts, real estate and other disposable assets of the National Power Corp.
The privatization of the 165-megawatt (MW) Casecnan Hydroelectric Power Plant (CHEPP) and the sale of remaining real estate assets remain PSALM’s top priorities this year.
Previously, there were 14 prospective bidders that signified their intent to participate in the sale of the CHEPP.
The list is now down to seven. These are Fresh Tiver Lakes Corp. of First Gen Corp.; Neptune Hydro, Inc. of SN Aboitiz; Global Hydro Power Corp. of Meralco-Global Business Power Corp.; Panasia Energy Inc.; Consortium of EEI Power Corp., Soosan ENS Co. Ltd., Soosan Industries Co. Ltd., and Mapalad Power Corp.; GigaAce 11 Inc. of ACEN Corp.; and Belgrove Power Corp.
The state firm has moved the deadline of the bid submission to May 16 from April 18.
The CHEPP was turned over to the government in 2021 after the 20-year build-operate-transfer scheme between the CE Casecnan Water and Energy Co. Inc. and the National Irrigation Administration (NIA) lapsed on Decemebr 11, 2021. It was then placed under the co-ownership of PSALM and NIA, which represents the government’s interest at 60 percent and 40 percent, respectively.
The CHEPP is a “run-of-river” type of plant with limited impounding area. The water from the reservoir flows into the plant’s powerhouse, down to the Pantabangan lake and into the irrigation channels of theNIA, which will continue its mandate of irrigating farmlands even after the privatization of the CHEPP. It is located at Sitio Pauan, Brgy. Villarica, Pantabangan, Nueva Ecija, about 150 kilometers north of Manila.
