PSALM accelerates Napocor’s privatization

STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has lined up the government’s power sector privatization program for the year.

Emmanuel Ledesma, PSALM president, said that the agency scheduled the sale of National Power Corp.’ s ( Napocor) 650megawatt Malaya thermal plant, power barges (PB) 101 to 104 and Bataan decommissioned generating facility this 2012.

The asset management firm also set for auction Napocor’s contracted capacities, via the appointment of independent power producer administrators ( IPPA), with the Casecnan multipurpose hydroelectric and the Unified Leyte A and B geothermal plant in Luzon.

The proceeds from the asset sale, he said, will be used to plug PSALM’S projected deficit of P85 billion this year.

“In line with the governments’ thrusts to consolidate the liability management of [ government owned and controlled corporations] with the sovereign, the [Finance department] will determine and finalize the borrowing structure to fund the projected P85 billion PSALM deficit,” he added.

The said amount will be used for Napocor’s debt payments, power plant expenses, interest costs and the latter’s obligations with contracted power producers for 2012.

PSALM is mandated by the Electric Power Industry Act of 2001 to privatize Napocor’s assets and use the proceeds thereof to pay off the latter’s obligations.

Besides the sale of the power firm’s assets, Ledesma said that PSALM is also looking to liquidate the agency’s privatization receivables with the National Grid Corp. of the Philippines (NGCP), which acquired the concession to operate and manage the country’s transmission lines from the state- auction block; and to accelerate the sale of Napocor’s non-power assets to help bridge this year’s deficit.

“To date, outstanding receivables from NGCP amount $ 2.85 billion,” he said.