PSALM settles PhP52.55 billion in financial obligations for 2015

24 Nov 2015

"PSALM settled PhP52.55 billion in debts, IPP lease obligations, and interest for the first three quarters of 2015, inclusive of the PhP3.0 billion prepayment of debts. This is solid proof that PSALM has been effective and consistent in fulfilling its mandate to liquidate the financial obligations it absorbed from the National Power Corporation (NPC), amidst the impact of currency fluctuations and other market forces," said PSALM President and Chief Executive Officer Lourdes S. Alzona.

The success of PSALM's privatization program has provided funding for liquidating its financial obligations. The payment for Power Barges 101, 102 and 103, which were turned over to their new owners in July this year, was the latest addition to the privatization proceeds of PSALM.

The financial obligations, inclusive of interest, assumed by PSALM from NPC under the Electric Power Industry Reform Act that amounted to PhP1,219.61 billion as of end-December 2000, peaked to PhP1.63 trillion in 2003 with the commissioning of new power plants and the devaluation of the peso against the US dollar.

PSALM's commitment to liquidate its financial obligations and eventually reduce its stranded debts through its Liability Management and Privatization Programs trimmed its financial obligations to only PhP674.04 billion as of the third quarter of 2015, inclusive of PhP108.82 billion interest. This level posted a reduction of almost 60% from its peak in 2003.

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