STATE-run Power Sector Assets and Liabilities Management (PSALM) Corporation has received the balance of a Pampanga electric cooperative’s restructured obligation amounting to almost P1.1 billion.
“The amount of prepayment sets the record as the biggest ever received by the government power firm from any electric cooperative for its outstanding obligation,” PSALM president and chief executive officer (CEO) Lourdes S. Alzona said.
Pampanga II Electric Cooperative, Inc.’s (PELCO II) liability was originally pegged at P1.43 billion, to be amortized within 10 years beginning October 2010.
That same month, PSALM’s board approved a restructuring of the cooperative’s unpaid obligations, which were subsequently trimmed.
PELCO II availed of the National Electrification Administration’s (NEA) Investment and Management Contract (IMC) program and a loan from Philippine National Bank to pay off the restructured account.
PELCO II is currently under a 20-year IMC with the Comstech Integration Alliance, Inc. (Comstech) and Manila Electric Co., which is acting as a technical advisor to Comstech.
Under the IMC, the investor-manager will settle the cooperative’s debts with the NEA and its power supplier.
PSALM Treasury Department Manager Manuel Marcos M. Villalon 2nd said the NEA program “encourages ailing electric cooperatives to consider IMC as an option to address financial concerns.”
“Hopefully, this can be a project that the other electric cooperatives will also engage in,” he added.
Alzona said PELCO’s payment of P1.095 million, received last Sept. 30, would also lead to a reduction in National Power Corp.’s stranded debts.