The Power Sector Assets and Liabilities Management (PSALM) Corp. has reduced its financial liabilities to P283.65 billion as of end-March from the 2003 peak level of P1.24 trillion.
Contributing to this is Therma Luzon Inc.’s prepayment of its monthly payments relative to the Pagbilao coal-fired power plant independent power producer (IPP) administration contract in November 2023; the sale and turnover of the Casecnan hydroelectric power plant to Fresh River Lakes Corp. in February 2024; and the successful privatization of selected real estate assets that generated a total of P31.77 billion.
“We are extremely pleased with the progress made in reducing our financial obligations… The reduction in our financial obligations bring us closer to fulfilling PSALM’s mandates and ensuring a sustainable power sector in the Philippines,” said Dennis Edward Dela Serna, PSALM president and chief executive officer, in a statement.
As of end-March, privatization proceeds generated by PSALM from the sale of generation assets, appointment of IPP administrators, privatization by way of concession of the government transmission business amounted to P903.412 billion with an actual collection of P769.602 billion.
PSALM said it is implementing a multi-pronged strategy for lowering its obligations including the optimization of operations of remaining power assets and maximizing revenue streams apart from entering into short-term lease agreements over certain assets that are not yet scheduled for privatization, raising additional revenues of P12.06 million.
In terms of power sales, PSALM also achieved a collection efficiency rate of 93.35 percent which is equivalent to P14.91 billion collection from current power sales of its remaining power plants.
