18 Mar 2011
The Power Sector Assets and Liabilities Management (PSALM) Corporation said that the indicative USD3.7-billion residual debt at the end of PSALM's corporate life in 2026 is exclusively based on current privatization proceeds and maturing financial obligations and is, theoretically, stranded debt as presented to Congress.
This was the response of PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. to questions posed after his presentation on PSALM's financial obligations in Congress last week.
President Ledesma said that at the end of PSALM's corporate life, the residual debt will be transferred to the national government as explicitly stated in Republic Act No. 9136, the Electric Power Industry Reform Act, unless PSALM fully liquidates this debt in 2026 through future privatization proceeds and the Universal Charge collections to be approved by the Energy Regulatory Commission.
Strategic Communications and Partnership Division |