PSALM receivables from Ilijan gas-fed plant soar to P22.396 B

By Myrna M. Velasco – July 24, 2018, 10:00 PM
from Manila Bulletin

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) has jacked up its receivables or the outstanding dues of the 1,200-megawatt Ilijan gas-fired power plant to P22.396 billion as of end-December, 2017 from P21.746 billion in 2016.

PSALM logo

In the company’s audited financial statement, PSALM booked P27.222 billion as “dues” from privatized generation assets and supply contracts with independent power producers (IPPs), and the bulk of it is with South Premiere Power Corporation (SPPC) of the San Miguel group for the Ilijan plant.

The other receivables have been: P1.064 billion from Good Friends Hydro Resources Corporation; P1.027 billion from FDC Misamis Power Corporation; P775.136 million from FDC Utilities, Inc.; P531.586 million from Therma Luzon, Inc.; P321.792 million from Aboitiz Energy Solutions, Inc.; P321.677 million from Unified Leyte Geothermal Energy Inc.; P250.985 million from San Miguel Energy Corporation; P239.011 million from Vivant Sta Clara Northern Generation Corporation; P137.407 million from Vivant Energy Corporation; P133.097 million from Strategic Power Development Corp. and P24.078 million from Waterfront Mactan Casino Hotel, Inc.

“The bulk of the accounts receivable-generation payments is due from SPPC, with P18.584 billion already past due,” the state-owned company stressed.

PSALM emphasized that “the overdue amount arose from disputed items and differences in interpretation of certain provisions of the IPPA Administration Agreement.”

It expounded that it booked P4.622 billion receivables from SPPC for the period from June 26, 2010 to December 25, 2012; and P9.059 billion from December 26, 2012 to December 31, 2017.

Not considered as past due in the Ilijan plant is P3.812 billion; while P201.052 million had been due in the past 30 days; and P254.371 million in the past 30-60 days.

For several times, SMC disputed PSALM’s calculation and insisted that SPPC owes it nothing when it comes to the Ilijan plant’s IPPA arrangement. Court cases are pending relative to the resolution of this dispute.