PSALM runs after IPPAs for P33.6-B unpaid accounts
THE POWER Sector Assets and Liabilities Management Corp. (PSALM) will continue its vigorous collection efforts to go after Independent Power Producer Administrators (IPPAs) with delinquent accounts totaling a whopping P33.62 billion as Finance Secretary Carlos Dominguez III instructed this corporation to pursue all legal remedies to compel these IPPAs to pay up at once.
Following its steppedup collection drive in response to Dominguez’s directive, PSALM was able to collect P70.41 billion combined from its various IPPAs last year, said Department of Finance (DOF) undersecretary for Legal Affairs Bayani Agabin.
San Miguel Corp. (SMC)’s South Premiere Power Corp. (SPPC), which administers the capacity of the Ilijan gas-fired power plant in Batangas City, has the highest unpaid account in the sum of P23.94 billion as of Dec. 31, 2019.
There is a pending case before the RTC of Mandaluyong City where SPPC is asserting another formula for computing its payables to PSALM. This case has been pending since September 2015.
Agabin said Dominguez, who is PSALM chairman, had directed PSALM to immediately initiate collection cases against the erstwhile IPPAs of the Unified Leyte Strips of Energy in Tongonan, Leyte, particularly Good Friends Hydro Resources Corp. of Fernando Borja and the Waterfront Mactan Casino Hotel, Inc. of William Gatchalian that have delinquent accounts with PSALM.
Contracts of these two IPPAs—Good Friends and Waterfront—were terminated by PSALM in August 2017 and October 2019, respectively, for non-payment. Good Friends owes PSALM P1.21 billion, while Waterfront has unpaid obligation of P87.74 million.
Two IPPAs of Filinvest Development Corp., namely FDC Utilities Inc. for the Unified Leyte Strips of Energy contract and FDC Misamis Power Corp. for the capacity of Mindanao I and II Geothermal Power Plants, are being compelled by PSALM to pay their delinquent accounts amounting P1.17 billion and P2.63 billion, respectively.
Both IPPA contracts were also terminated by PSALM for non-payment.
The amounts due PSALM are the subject of two separate arbitration proceedings initiated by these Filinvest companies. But notwithstanding the ongoing arbitration, Filinvest recently expressed to PSALM its willingness to settle the delinquent accounts, PSALM president Irene Joy BesidoGarcia said.
Vivant-Sta. Clara Northern Renewables Generation Corp. (Northern Renewables), which administers the IPPA agreement for the Bakun Hydroelectric Power Plant in Ilocos