THE Power Sector Assets and Liabilities Management Corp. (PSALM) has fully remitted P46,077,239.87 as the share in national wealth (SNW) for first quarter 2020 to the local government units (LGUs) hosting its renewable power plants.
The state-run firm said recipient LGUs include Benguet, Bukidnon, Laguna, Lanao del Norte, Lanao del Sur and Pangasinan.
“We did our best to process the releases immediately and we even coursed them through bank transfers in order for the LGUs to access the funds and perhaps utilize them for their COVID-19 response activities,” Irene Garcia, PSALM president and chief executive officer, said in a statement.
Under the Local Government Code of 1991, on top of the internal revenue allotment, an LGU is entitled to receive either one percent of the gross sales or receipts of the preceding calendar year or 40 percent of the national wealth taxes, royalties, fees or charges derived by an entity engaged in the utilization and development of the national wealth, whichever is higher.
The law also requires that at least 80 percent of the SNW be utilized by recipient LGUs to lower the cost of electricity in their respective localities but they are also allowed to spend it for productive, developmental and welfare purposes.
The share is directly remitted to the provincial, city, municipal or barangay treasurer concerned.
PSALM’s next quarterly release will be in July.
At present, among the renewable energy power plants that are still under PSALM’s authority are the Agus-Pulangi hydro power complex in Lanao del Norte, Lanao del Sur and Bukidnon; the Caliraya-Botocan-Kalayaan hydro power complex in Laguna; and the Casecnan hydro power project.
PSALM is mandated to privatize power related assets owned by the government. However, its corporate life is only until 2026.
