Napocor to sell plane to PAF

The National Power Corp. (Napocor), the country’s largest power producer, is looking at the possibility of selling its $5 million eight-seater King Air to the Philippine Air Force (PAF), Napocor president Jesus N. Alcordo said Thursday.

"The latest offer we have received came from the Air Force. They have expressed interest to buy the airplane," Alcordo said, adding that they have been trying to dispose off some of its assets to cut down on its losses.

Alcordo however, said they are studying the offer since it might entail only a transfer of assets.

The deal could be done government to government," he said, implying that there might not be cash involved in the transaction.

The disposal of the King Air was part of the P22 billion that Napocor intends to raise from the sale of its non-performing assets this year.

The state-owned power firm was desperately seeking ways to trim down its losses.

Early this week, Napocor raised some P3 billion through a bond float.

Proceeds from the flotation will be used to finance its maturing obligations this year and partly bring down the company’s losses.

It is also planning to issue $400 million seven-years notes. This financing, on the other hand, will partially cover Napocor’s capital expenditures. Portion of the issuance’s proceeds will also refinance maturing obligations of the power firm.

As of end-December 2000, the company recorded total loans of P900 billion and net loss of P20 billion including interest expense from loans. About $144 million loan from ING Barings is set to mature this October.

Apart from these financing schemes, Alcordo said about P10 billion would be raised by the company from the sale of its real estate properties, including the other transportation facilities like aircraft and barges.

Specifically, he said they are planning to dispose a 12-hectare real estate in Makati, including the site of the Mile Long Arcade and a portion of the Ecology Village. Napocor’s real estate assets in various points of Metro Manila total to about 25 hectare. – Donnabelle Gatdula