State-run Power Sector Assets and Liabilities Management Corp. said it reduced its financial liabilities by 2.4 percent in 2022 to P346.8 billion from P355.2 billion in 2021.
PSALM data showed that its financial obligations declined from as high as P1.24 trillion in 2003, representing a reduction of P893.83 billion over 19 years.
The company said this was done “through the continuous implementation of liability management programs and strategies.”
The company’s financial liabilities consisted of debts amounting to P275.069 billion and independent power producer lease obligations valued at P71.7 billion.
PSALM is mandated under the Electric Power Industry Reform Act of 2001 to manage the assets and liabilities of National Power Corp. These financial obligations include domestic and foreign borrowings; obligations under the independent power producer contracts; and other NPC debts transferred to and assumed by PSALM pursuant to the EPIRA.
PSALM said that in terms of currency, more than half or about 52 percent of its financial obligations were dollar-denominated amounting to P181.69 billion, while the remaining P164.07 billion were peso-denominated.
“Part of the liability management plan is to build more peso-liabilities, convert those dollar liabilities to peso for less foreign exposure,” PSALM president Dennis de la Serna said.
He said the agency would continue to pursue the privatization of NPC’s remaining assets such as the sale of the 165-megawatt Casecnan hydroelectric power plant in Nueva Ecija, the 797.92-megawatt Caliraya-Botocan-Kalayaan hydropower plants, the Agus-Pulangi hydro complex and the 210-megawatt Mindanao coal-fired power plant.
He said PSALM would also privatize the remaining NPC real estate assets.
De la Serna said he would also push for the extension of the life of PSALM by an additional 30 years as the agency’s life will end by June 2026. “As part of my priorities I want to extend the life of PSALM…We are willing to work with congressmen,” he said.
PSALM was given 25 years from the effectivity EPIRA to fulfill its twin mandates unless otherwise extended by law.
He said the company would use the additional time to privatize the remaining NPC assets and liquidate its liabilities.