JBIC consent for transfer of Napocor assets seen

The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) said it is optimistic that it would be able to secure the approval from the Japan Bank for International Cooperation (JBIC) for the transfer of National Power Corp. (Napocor) assets and liabilities to PSALM.

PSALM president Jose Ibazeta said they are currently threshing out the remaining issues with JBIC. "It (JBIC’s consent) is on its way. We hope to resolve all the issues soon."

He said they expect that the Japanese multilateral creditor would give its go-signal for the universal transfer (lock, stock and barrel) of the debts and assets of Napocor to PSALM within the year.

"Everything is falling into the proper places and it is converging in one point.  We hope to get the approval of JBIC this year," he said.

Securing consent from creditors is one of the priorities of the newly-appointed PSALM chief, pointing out that he wants all the privatization proceedings of PSALM to be successful.

The other major multilateral creditors of PSALM— World Bank and Asian Development Bank (ADB)—have already given their respective omnibus consents for the transfer of the debts and assets of the Napocor and National Transmission Corp. (TransCo) to PSALM.

The creditors’ consent is a standard requirement by banks and other financial institutions before its borrowers could transfer ownership of assets that were acquired using loans the banks extended.

The consent of creditors is a major pre-condition for the successful privatization of Napocor assets.