The Power Sector Assets and Liabilities Management Corp. (PSALM) has reduced by P40.103 billion its principal financial obligations last year to P381.908 billion from P422.01 billion at the start of 2020.
The state-run firm said the reduction was more than double of the target of P10.184 billion.
PSALM said it paid all interests and borrowing costs that matured in 2020 totalling P11.56 billion as it also reduced average interest rate on borrowings from 5.07 percent per annum at the end of 2019 to 4.17 percent per annum at the end of 2020.
In 2020, the firm also collected P38.656 billion deferred privatization proceeds composed of payments from independent power producer administrators and from the concession payments from the transmission business and another P2.607 billion from overdue and delinquent accounts of power customers which accounts PSALM absorbed from National Power Corp.
Last year, it also successfully privatized 10 real estate assets located in Agusan in Bukidnon, Maco in Davao de Oro, Nasipit in Agusan del Norte, Loboc in Bohol and Camalaniugan in Cagayan that raised revenues of P51.65 million. PSLAM also raised P26.45 million from the sale of assets and retirement of equipment and scrap materials.
To generate additional income, PSALM also entered into short-term lease agreements with government offices over certain assets not scheduled for privatization that raised additional revenues of P29.50 million.
PSALM has tapped the Asian Development Bank last year for the conduct of a study on the possible privatization options and structures of hydroelectric power plants such as the Caliraya-Botocan-Kalayaan and Casecnan with the final results expected to be released by the end of the month.