Financial Management
Liability Management

The reduction, if not elimination, of NPC’s financial obligations primarily hinges on the success of the privatization of NPC assets, including the efficient collection of the proceeds, and PSALM’s effective implementation of its liability management program. The completion of the privatization program will also help PSALM in avoiding operational losses from expensive power plants and IPP contracts.

Liability Management Transactions

The Department of Finance (DOF), in its letter dated 10 July 2015, gave its concurrence to PSALM’s prepayment of loans from Asian Development Bank (ADB), Nordic Development Fund (NDF) and Instituto de Credito (ICO) amounting to USD39.82 million or PhP1.76 billion. Later on 30 September 2015, PSALM prepaid the loans to NDF and ICO of the Kingdom of Spain amounting to USD3.66 million and PhP450.42 million, respectively. On 15 October 2015, PSALM prepaid the ADB 1984 Philippine loan amounting USD24.84 million.

Fund Management Activities

To date, PSALM has collected PhP27.05 billion from the Department of Public Works and Highways (DPWH), DENR and National Irrigation Administration (NIA) for the reimbursement of advances of PSALM/NPC for the San Roque Multi-Purpose Project Non-Power Component (SRMPP advances), with the following breakdown:

Agency Previous Years 2016 Total (In PhP)
DPWH 160,370,000   160,370,000
DENR 5,483,170,000.00 1,393,050,308.83 6,876,220,308.83
NIA 17,367,582,000.00 2,642,010,000.00 20,009,592,000.00
Total 23,011,122,000.00 4,035,060,308.83 27,046,182,308.83

On 15 March 2017, NIA remitted to the Bureau of Treasury (BTr) the amount of PhP2.64 billion to partially cover NIA’s share in the advances made by PSALM for the SRMPP loan. Subsequently, PSALM, in its letter dated 17 March 2017 requested BTr to credit the full amount to the Fund Management Agreement between PSALM and BTr.

On 23 March 2017, the DENR paid PSALM the amount of PhP1.39 billion as full payment of DENR’s share in the SRMPP advances made by PSALM.

On 07 April 2017, PSALM remitted the said to the Investment Fund under the Fund Management Agreement between PSALM and the Bureau of Treasury.

On 24 April 2017, PSALM made a bullet payment of PhP12.81 billion for the PhP18,678,000,000.00 at 7.75% Fixed Rate Retail Bond. The amount was sourced from the Investment Fund under the Fund Management Agreement..