16 Jan 2021
The Power Sector Assets and Liabilities Management Corporation (PSALM) received on 29 December 2020 a prepayment amounting P202,106,541.10 from Sorsogon I Electric Cooperative, Inc. (SORECO I). This prepayment is part of the Restructuring Agreement (RA) for SORECO I’s outstanding payables to PSALM. The Development Bank of the Philippines served as the partner bank, that extended a loan to SORECO I, and made this prepayment possible.
“PSALM is grateful to SORECO I for its remittances. Since SORECO I entered into an RA, it religiously paid its monthly amortizations for its obligations and consistently updated its monthly amortizations for Deferred Accounting Adjustment (DAA) charges. This means that SORECO I may avail of the Prompt Payment Discount program starting January 2021 if the monthly DAA amortization is paid within the discount period. SORECO I is also up-to-date in remitting to PSALM the Universal Charges it collected from its end-users,” PSALM President and CEO Irene Joy Besido-Garcia said.
SORECO I signed its Restructuring Agreement with PSALM on 27 February 2020. The RA’s amortization period spans over 76 months or until May 2026. The RA provides a pre-payment option for SORECO I to avail of better financing terms and make loan payments easier. With the support from DBP, SORECO I availed of the pre-payment option.
SORECO I provides electricity to eight municipalities in the Province of Sorsogon, including the cities of Irosin and Matnog.
All payments from power accounts contribute to the reduction of PSALM’s outstanding financial obligations assumed from the National Power Corporation.
Corporate Communications Division