Napocor needs $157M to pay maturing obligation

State-owned National Power Corp. (Napocor) will have to raise some $157 million before July this year to pay off its maturing obligation to JP Morgan, Energy Secretary Vincent S. Perez said over the weekend.

Perez said the state-run power firm, which transmission assets will be sold middle of the year, will need some $818 million for its total debt service payment for 2002.

"There would be no problem when it comes to raising money for the maturing debts of Napocor since they expect the privatization proceeds to help them bridge the financing requirement of the country’s largest power generation company," Perez said.

If privatized, the transmission assets of Napocor could fetch about $2 billion.

Sources from Napocor said the company could use its earnings from energy sales to finance its operations but the budget for maturing debts will still have to rise. Estimates show that Napocor would need about $1 billion for its capital expenses this year.

Since the government decided to defer plans to float bonds in the international market to finance the funding requirement of Napocor, Perez said they might yet find another way to raise funds.

The Napocor was able to survive last year’s operations through the help of the National Government that borrowed in behalf of the power firm.