Napocor needs P17-B to pay loans in May

The National Power Corp. (Napocor) is in dire need of about P17 billion next month to pay off some maturing obligations.

According to Napocor sources, the Department of Finance (DOF) has yet to release the $750-million (P38.25-billion) loan the DOF had borrowed in behalf of the state-run power firm early this year.

Among the loans that need to be paid in May include: the monthly debt servicing requirement of $66 million (P3.36 billion); P6 billion to be paid to the Bureau of Treasury; and $150-million (P7.65-million) debt payment for a maturing loan with JP Morgan.

Napocor sources explained that under the power firm’s expenditure program, it is expected to pay some $800-million worth of debts this year. "If you will divide the $800 million in 12 months, you will get a monthly debt servicing requirement of $66 million," the sources said.

On the BTr loan, the sources said that the Napocor owed BTr P11 billion when the Bureau of Treasury arranged for a bridge financing for the beleaguered power firm in the latter part of 2001. During that time, Napocor decided to postpone its bond float due to the Sept. 11 terrorist attacks. Of the P11 billion, a P5-billion loan was already paid from the proceeds of the $400-million Eurobonds.

"The loan by BTr was supposed to be 90 days but we requested for extension since we have no money at the time the debt papers matured," Napocor sources said, adding that Napocor was able to survive the first three months of operation using the proceeds from the $400-million Eurobonds it floated early this year.

Power Sector Assets and Liabilities Management Corp. (PSALM) president Edgardo Del Fonso, on the other hand, confirmed that the Napocor and the DOF are still threshing out some issues before the $750-million loan is released to the state-owner power generation company.

"The Napocor is being asked to comply with some administrative requirements before the loan is released," Del Fonso said. He expressed optimism that the loan would be given to Napocor soon. "I believe that this (loan) will be disbursed to them (Napocor) soon because if we will have (financial) problem, we don’t have anywhere else to go but to the government," he said.

According to Napocor sources, the DOF is having some problem securing a guarantee for the $250 million of the $750-million loan to Napocor. "So far, only the $500 million has the government guarantee," the sources said. — Donnabelle Gatdula