19 Jan 2021
On 19 January 2021, the Power Sector Assets and Liabilities Management Corporation (PSALM) reported its 2020 accomplishments to Secretary Carlos G. Dominguez of the Department of Finance, as follows:
1. PSALM reduced its principal financial obligations by P40.103 billion in 2020, which is much more than the target of P10.184 billion reduction for the year. At the end of 2020, the total obligation was reduced to P381.908 billion from P422.01 billion at the start of 2020. PSALM also paid all interests and borrowing costs that matured in 2020 totaling P11.56 billion.
2. PSALM was able to lower it average interest rate on borrowings from the average of 5.07% p.a. at the end of 2019 to 4.17% p.a. at the end of 2020.
3. PSALM successfully collected deferred privatization proceeds amounting to P38.656 billion composed of payments from Independent Power Producer Administrators and from the concession payments from the transmission business.
4. PSALM was able to achieve a collection efficiency rate of 93.94% for power sales equivalent to P12.895 billion from its power customers.
5. PSALM successfully collected P2.607 billion from overdue and delinquent accounts of power customers, which accounts PSALM absorbed from National Power Corporation (NPC).
6. PSALM was able to keep its overhead expenses low, achieving a mere 4.23% share of overhead expenses to its total income, and well below the aim of keeping it at less than 14.00%.
7. On the Universal Charge, PSALM accomplished a 98% collection efficiency from its collecting entities equivalent to P16.69 billion.
8. PSALM met the 100% disbursement efficiency by ensuring full disbursement of all the collections of UC-Missionary Electrification Charge to the NPC and the Renewable Energy Developers (RE), disbursing a total of P3.55 billion.
9. PSALM adjusted its currency mix by borrowing in peso while paying foreign currency obligations, thereby, lowering the ratio of foreign currency obligations and mitigating foreign exchange risks.
10. PSALM worked with the Asian Development Bank (ADB) for the conduct of a study on the possible privatization options and structures for the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plants (HEPPs) and the Casecnan HEPP. The final results of the study are expected to be released by the end of January 2021.
11. To attract more bidders, PSALM streamlined its privatization processes and biddings to allow bidders to participate through online platforms and to minimize face-to-face transactions, in response to the COVID-19 pandemic.
12. PSALM successfully disposed of a total of 10 real estate assets located in Agusan in Bukidnon, Maco in Davao de Oro, Nasipit in Agusan del Norte, Loboc in Bohol and Camalaniugan in Cagayan, raising revenues of P51.65 million.
13. Other disposable assets from retired equipment and scrap materials were successfully sold by PSALM, raising a total of P26.45 million.
14. PSALM facilitated the early release of (a) the “Share in National Wealth” to 113 local government units (LGUs) amounting to P138.117 million, and (b) the ER 1-94 Funds to 16 LGUs amounting to P505.605 million.
15. To generate additional income, PSALM entered into short term lease agreements with government offices over certain assets that are not yet scheduled for privatization, raising additional revenues of PHP29.50 million.
16. PSALM reduced its Real Property Tax liability to P198.81 million from P1.0603 billion, generating savings of P861.49 million. PSALM also derived savings of P15.01 million from its very early payment of RPTs.
17. PSALM was able to maintain its international standards for its Quality Management System (ISO 9001:2015), by passing its surveillance recertification audit conducted by SOCOTEC Certification Philippines, Inc.in November 2020.
18. PSALM achieved the 95.65% employee competency level ensuring constant learning and growth for its employees.
Strategic Communications and Partnership Division |