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PSALM seals Special Payment Agreement with CASURECO III

The Power Sector Assets and Liabilities Management Corporation (PSALM) recently entered into a Special Payment Agreement (SPA) with Camarines Sur III Electric Cooperative, Inc. (CASURECO III), allowing the latter to viably settle its outstanding obligations totaling Php 584.3 million as of 30 June 2018.


CASURECO III shall make an upfront payment in settlement on or before 31 March 2019. After execution of the SPA, it shall also bind itself to pay its current monthly Deferred Accounting Adjustments (DAA) which may be subject to a Prompt Payment Discount if paid within PSALM’s discount period.


The SPA will benefit PSALM as it increases collection efficiency from its customers. Such measure will also correspond into savings from borrowing costs, and revenues from power customers will provide additional funding for the settlement of its assumed financial obligation, thereby reducing PSALM’s 2019 shortfall.


Recently, PSALM also entered into new Restructuring Agreements with Samar I Electric Cooperative Inc. (SAMELCO I) and Northern Samar Electric Cooperative (NORSAMELCO) allowing the electric cooperatives (ECs) to pay through installment their overdue obligations amounting to Php 1.05 billion. This flexible payment scheme puts less pressure on their cashflows while allowing them to improve their operations.


In the photo:


CASURECO III’s Acting General Manager Engr. Wilfredo Bucsit (3rd from left) shakes hand with PSALM President and CEO Irene Joy Besido-Garcia (4th from left) after signing the Special Payment Agreement. Witnesses to the contract signing are CASURECO III’s Finance Manager Jocelyn Orcine (far left), NEA’s Accounts Management Specialist Ma. Yvette Muyargas (2nd from left) and Accounts Management and Guarantee Department Manager Leila Bonifacio (3rd from right), PSALM Vice President for Finance Lourdes Alzona (second from left) and Treasury Department Manager Manuel Marcos Villalon II (far right)