PSALM focuses on mandate amid Ledesma’s ‘suspension’

by Lenie Lectura, 09 June 2015
from BusinessMirror

THE Power Sector Assets and Liabilities Management Corp. (PSALM) continues to pursue the sale of government assets amid the suspension of the state firm’s president.

PSALM is the agency mandated by Republic Act (RA) 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp.

The power facilities that are up for sale this year include the independent power producer administrator  bulk energy contracts of up to 200 megawatts (MW) for the Unified Leyte  power plant; the 210-MW Mindanao coal-fired power plant in Misamis Oriental; Power Barges 101 to 103 (96 MW), PB 104 (32 MW); and the decommissioned Sucat power plant.

For 2016 PSALM intends to privatize the 727-MW Caliraya-Botocan-Kalayaan hydropower facility.

It has set the indicative turnover of the administrator of the CBK contracts by the first semester of 2017.

In 2017 PSALM wants to privatize the Agus-Pulangi hydro complex.

As of end-2014 proceeds from the privatization efforts of PSALM stood at $8.529 billion. Of which, $1.298 billion was used for debt repayment, $4.899 billion for regular debt service, $2.22 billion for build-operate-transfer lease obligations and $108 million for other privatization-related expenses.

So far, PSALM privatized the 153.10-MW Naga power plant, the 218-MW and Angat hydropower plant, the 200-MW Unified Leyte geothermal strips of energy, the 92.52-MW Mount Apo 1 and 2 contracts.

“The privatization efforts of PSALM will continue because the OIC [officer in charge] has the same powers as the PSALM president. There will be no disruption,” said Energy Secretary Carlos Jericho L. Petilla, who is also a member of the PSALM Board.

Ledesma was placed on a 90-day suspension by the Board on allegations of corruption, abuse of discretion, among others. He was appointed by President Aquino in September 2010.

Lourdes S. Alzona, PSALM Vice President for Finance, is PSALM’s officer in charge.