State-run Power Sector Assets and Liabilities Management Corporation (PSALM) said it is optimistic of bringing down its outstanding liabilities to almost zero before the end of its extended corporate life.
PSALM President and CEO Dennis Edward A. “I am optimistic that we will be able to bring the obligations in the PSALM to close to zero at the end of the 10-year life,” Della Serna told reporters last week.
Created under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, PSALM was mandated to privatize government-owned power assets and manage the proceeds to settle the financial obligations of the National Power Corporation (Napocor).
The agency's corporate tenure, initially set to expire in June 2026, has been extended by 10 years after a measure granting the extension was signed into law in April.
Napocor's financial obligations dropped to P262 billion as of June, down from a peak of P1.2 trillion in 2003, PSALM data showed.
Mr. Dela Serna said PSALM's 10-year plan aims to eliminate remaining liabilities through a number of measures, including allocation under the Murong Kuriante Act, privatization of the Caliraya-Botocan-Kalayaan (CBK) hydropower plants, and a proposed concession agreement for the Agus-Pulangi Hydropower Complex.
The Murong Kuriante Act (Republic Act No. 11371) directs the government to use its share from the Malampaya Natural Gas Project to pay off PSALM's bad debts and contract costs, thereby reducing electricity rates for consumers.
PSALM is expected to generate approximately P36.23 billion from the sale of the CBK hydropower plants, which will be handed over to the Thunder Consortium composed of Aboitiz Renewables, Inc., Sumitomo Corp. and Electric Power Development Co.
“It's about P36 billion so there's P64 billion left. From there, we expect that with the successful concession of Agus-Pulangi, it should be more than enough to pay off all these obligations once they mature,” Mr. Dela Serna said.
He said the agency is considering a concession model for the rehabilitation of the Agus-Pulangi Hydropower Complex, which is estimated to generate P40 billion to P90 billion in revenues.
The complex, located in southern and central Mindanao, includes seven run-of-river hydropower plants with a combined capacity of about 1,000 megawatts (MW), although based on a 2024 World Bank report, only 600 to 700 MW are currently operational due to aging facilities.
While PSALM plans to hold a bidding process for the concession, Mr. Della Serna said the agency is also evaluating unsolicited proposals for the project.
“We have received several unsolicited proposals and we are now in the process of evaluating these unsolicited proposals,” he said.
The goal of PSALM is to support President Ferdinand R. The Agus-Pulangi concession deal is to be finalized within the tenure of Marcos, Jr. – Sheldeen Joy Talavera
