PSALM still has P380-B proceeds from privatization for collection

By Myrna M. Velasco – November 14, 2017, 10:00 PM

from Manila Bulletin

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) would still have P380.254-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-in-Charge 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 R57.883- billion 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 40-percent 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-Botocan-Kalayaan (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.