THE Power Sector Assets and Liabilities Management Corp. (PSALM) has pruned down its financial obligations by 4 percent (P17.7 billion) to P404.28 billion as of May 14, 2020 from P422.01 billion at the start of the year.
The state-run firm said it had sufficient funds to pay all its maturing obligations in the first five months of the year, even those that fell due during the enhanced community quarantine (ECQ).
PSALM attributed this to efficient collection last year and in the early months of 2020.
“PSALM has been paying its maturing debts and independent power producer (IPP) obligations including interest and other charges despite the ECQ and the deferment of revenue collections from power bills, certain IPP administration payments and the universal charge (UC). There are certainly serious financial setbacks caused by COVID-19 and the ECQ but PSALM will not default on any of its maturing obligations,” said Irene Joy Garcia, president and chief executive officer.
Garcia said PSALM intends to secure a P43-billion loan from the Development Bank of the Philippines to cover other maturing obligations for the rest of year after securing the approval of the Department of Finance to implement the first drawdown from the said loan by June 2020.
Garcia said the loan will be needed since anticipated revenues coming from privatization proceeds, power sales, delinquent and overdue accounts collections and UC stranded debts will not be sufficient to cover all the maturing obligations and operating expenses for the rest of 2020.
PSALM said the maturing financial obligations were assumed from the National Power Corp.
It is mandated to privatize power related assets owned by the government. However, its corporate life is only until 2026.
