MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has trimmed its debts by P8.44 billion last year to P346.76 billion.
In a statement, PSALM said the reduction in its financial obligations was achieved “despite the hostile market conditions,” with revenues buoyed by efforts to sell power supply at reasonable returns and asset disposal using streamlined procedures.
“These revenue drivers were complemented by the efficient management of foreign exchange risks by contracting new loans in Philippine peso to refinance maturing foreign denominated loans and the robust collection of outstanding receivables that have remained unpaid to PSALM for the longest time as well as the measures implemented to cut on operational costs,” PSALM president and CEO Dennis dela Serna said.
PSALM posted a 99.98 percent universal charge collection (UC) efficiency from collecting entities, obtaining P19.06 billion in UC remittances from January to December last year.
“PSALM has remained consistent in its goal of securing a 100 percent UC-missionary electrification disbursement to National Power Corp.and renewable energy developers,” it said.
PSALM generated an upfront income of P1.84 billion from the disposal of real estate assets.
It also generated P35.4 million worth of proceeds and saved costs from maintaining disposable assets from previously sold power plants.
For this year, PSALM said it is prioritizing the privatization of the 165-megawatt (MW) Casecnan Hydroelectric Power Plant (CHEPP) as well the disposal of its remaining real estate assets.
PSALM is looking to commence this year the sale process for the independent power producer (IPP) contract of the combined 796.46-MW Caliraya-Botocan-Kalayaan (CBK) power plant complex in Laguna.
For the CHEPP, PSALM earlier said that 14 bidders have expressed interest to participate in its sale. The power asset is a run-of-river type of plant with limited impounding area.
Deadline for submission of bids for the CHEPP is set on March 28, with asset turnover to the winning bidder targeted within the first semester.
As for the CBK power plant complex, PSALM was earlier looking to publish the invitation to bid within the first half, with public bidding as well as the turnover of the IPP contract to the winning bidder eyed by the second half.
For its asset management thrusts, PSALM said it aims to efficiently manage its power plants through third-party operators.
PSALM is also continuously selling energy capacities at a lower rate from the Agus and Pulangi hydros, Casecnan hydro and remaining IPP plants, namely CBK hydros, Mt. Apo geothermal and Mindanao coal.
It said other priorities this year include tariff adjustments for PSALM plant’s true-up cost, servicing of maturing financial obligations funded from continuous collection of proceeds from asset privatization, UC-stranded debts, plant revenues and Murang Kuryente Act allocation and successful litigation of pending cases.