According to the DOJ, since Napocor’s assets have not been transferred yet to the Power Sector Assets and Liabilities Management Corp. (PSALM), the power firm can still tap both the domestic and international markets for its funding requirements.
Napocor is planning to offer some $600 million worth of bonds in the international market in the last quarter of this year to finance its operations and settle its maturing obligations.
Napocor general counsel Rainier Butalid said they will ask the DOJ to clarify its latest opinion (DOJ Opinion No.58) since "in the first opinion issued by the DOJ last June 3, 2002, it failed to consider the fact that there is a time lag in the transfer of assets from Napocor to PSALM," Butalid said.
"During this lag time, Napocor still needs time to look for funds and support its operational requirements. If Napocor will not be allowed to borrow, it will, of course, suffer," he added.
Butalid pointed out that even as Napocor transfer all its assets to PSALM, it still has the missionary function to operate the so-called small power utilities group (SPUG). "Eventually, if SPUG operations need funding, Napocor will have to borrow money," he explained.
DOJ’s latest opinion clarified its previous pronouncement (DOJ Opinion No. 42) which said that "with the passage of RA No. 9136 (EPIRA), and with the effectivity of its implementing rules and regulations on March 22, 2002, the Napocor no longer has the legal personality to issue new bonds or other forms of indebtedness."
But Napocor argued that it still has legal personality to incur indebtedness notwithstanding the passage of the EPIRA.