PSALM plans to borrow P85 billion this year

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) needs to borrow P85 billion for its debt management and operations this year, its top official said.

“Those are the financial requirements we would need for this year. A portion is to pay off maturing debts,” said PSALM president and chief executive Emmanuel R. Ledesma Jr.

The fund source, which is still under discussion, should be secured before May this year, he said.

The P85-billion funding will also be used to operate and maintain remaining power plants under government control.

National Power Corp. owns and operates power generating facilities such as the 700-megawatt (MW) Agus-Pulangui hydroelectric power complex in Lanao provinces, the 850-MW Sucat thermal plant and the 630-MW Malaya thermal plant.

“We are still okay until May, we are fine. So before that time we should explore already how to go about it,” Ledesma said.

PSALM is still in discussions how it will secure funds.

“I think it will be [through the] Department of Finance because they will be able to source it cheaper. With the amounts involved, 25 to 50 basis points make a big difference,” Ledesma said.

PSALM is also looking at raising funds through offshore bonds but has to determine the denomination and the timeline.

PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing Napocor’s power plants and debt.

Early this week, the state-run firm pushed back the bidding for its four power barges by a month to May 16 to give more time for interested firms’ due diligence.