PSALM still has pro­ceeds from pri­va­ti­za­tion for col­lec­tion

Manila Bulletin - - Business News - By MYRNA M. VELASCO

State-run Power Sec­tor As­sets and Li­a­bil­i­ties Man­age­ment Cor­po­ra­tion (PSALM) would still have R380.254-bil­lion pri­va­ti­za­tion pro­ceeds for col­lec­tion out of the di­vested Na­tional Power Cor­po­ra­tion (NPC) as­sets.

These will pri­mar­ily cover the re­main­ing R87.81 bil­lion or $2.054-bil­lion con­ces­sion fees from the Na­tional Grid Cor­po­ra­tion of the Philip­pines (NGCP); and R292.444 bil­lion from the pri­va­tized power sup­ply con­tracts of the in­de­pen­dent power pro­duc­ers.

Ac­cord­ing to PSALM Of­fi­cer-in­Charge Lour­des S. Al­zona, the con­ces­sion­aire-firm al­ready made its re­mit­tance for the sec­ond half of this year, so re­main­ing bal­ance had been down from where it was at $2.096 bil­lion in the first quar­ter of this year.

NGCP made sig­nif­i­cant R57.883bil­lion pre­pay­ment in 2013, and that sub­stan­tially re­duced its to­tal obli­ga­tion on the con­ces­sion fees to the Philippine gov­ern­ment.

The Sy-led firm, which has State Grid Cor­po­ra­tion of China as its 40per­cent eq­uity holder and tech­ni­cal part­ner, won the 25-year con­ces­sion deal for the Na­tional Trans­mis­sion Cor­po­ra­tion (Tran­sCo) when it was pri­va­tized in 2009. Its win­ning of­fer was $3.95 bil­lion.

In­clu­sive of in­ter­est charges and other al­low­able ad­just­ments, the gov­ern­ment’s to­tal pro­ceeds from Tran­sCo pri­va­ti­za­tion was placed at $6.1 bil­lion and $4.046 bil­lion had al­ready been re­mit­ted.

For col­lec­tions from the IPP Ad­min­is­tra­tors (IPPAs), the to­tal pri­va­ti­za­tion pro­ceeds had been es­ti­mated at $10.824 bil­lion and roughly $4.5 bil­lion had al­ready been paid to PSALM.

On the sale of power gen­er­at­ing as­sets, PSALM data had shown that it al­ready fully col­lected $3.605 bil­lion worth of pro­ceeds from pri­vate sec­tor tak­ers. The same goes with the de­com­mis­sioned power fa­cil­i­ties, which yielded to­tal pro­ceeds of $7.0 mil­lion.

PSALM logged $19.996 bil­lion worth of pri­va­ti­za­tion pro­ceeds for the NPC as­sets, and re­main­ing col­lec­tion could still be half of the to­tal amount.

The as­set-seller firm’s life cy­cle will end in 2026, so it has been find­ing its way into pri­va­tiz­ing the other re­main­ing NPC as­sets so it can fur­ther tug its way into re­duc­ing the power sec­tor’s debt and stranded li­a­bil­i­ties.

It still has sev­eral as­sets un­der its charge, in­clud­ing the Cali­raya-Bo­to­canKalayaan (CBK) and Casec­nan hy­dro plants, the Min­danao coal-fired power fa­cil­ity for IPPA en­gage­ment on its sup­ply con­tract and the Agus-Pu­lan­gui hy­dropower com­plexes.

Nev­er­the­less, for the Agus-Pu­lan­gui fa­cil­i­ties, the plan of the Duterte ad­min­is­tra­tion is to pur­sue its re­ha­bil­i­ta­tion prior to di­vest­ment.

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