The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) trimmed down its debts by 42 percent from P1.2 trillion in 2000 to P698.9 billion at the end of 2014, PSALM President and Chief Executive Officer Emmanuel Ledesma Jr. said on Tuesday.
Ledesma attributed the decline to PSALM’s privatization program, which generated a total P916.2 billion at the end of 2014 with P420.1 billion paid and P471.5 billion collectible.
He said the interest payable has dropped considerably but “the remaining interest until the debt maturity still amounts to about P116.7 billion.”
PSALM has other assets that can help it liquidate its financial obligations. These assets include the Agus-Pulangui hydropower complex, Power Barges 101-104, Malaya thermal power plant, and the decommissioned Sucat thermal power plant.
The agency is also scheduled to privatize the energy outputs of its independent power producers, such as the Unified Leyte geothermal plant, the Mindanao coal-fired thermal power plant, and the Caliraya-Botocan-Kalayaan hydropower plants.
Ledesma said the latest privatization proceeds included payment from the 218-megawatt Angat Hydroelectric power plant and the 153.1 megawatt Naga power plant that generated P21 billion for the government.
PSALM turned over Angat Hydroelectric plant to Korea Water Resources Corp last October 31 and the Naga power plant to SPC Power Corp on September 26.
“The completion of these privatization activities generated P21 billion for the government.
PSALM received P20 billion from K-Water and P1.1 billion from SPC,” Ledesma said.