MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to increase its collection efficiency next year following the implementation of flexible payment schemes to delinquent companies.
The Department of Finance (DOF) has mandated to raise the state-run firm’s collection next year, PSALM president and CEO Irene Joy Besido-Garcia said.
“The mandate remains to be the same, to aggressively collect all the liabilities, to make sure that the efficiency in collection remains or is improved,” she said.
The PSALM official said DOF Secretary Carlos Dominguez has been backing the agency in improving its operations.
“That’s also the reason why we were able to collect from the non current accounts because he has been very supportive of all our efforts,” Besido-Garcia said.
As approved by the DOF, PSALM has allowed flexible payment schemes to encourage entities and electric cooperatives with non-current or delinquent accounts to settle their outstanding obligations.
“Through restructuring agreement and special payment agreement schemes, PSALM puts less pressure on their cash flow while allowing [it] to improve operations,” Besido-Garcia said.
To-date, PSALM has collected P2.62 billion non-current arrears from various entities.
It also achieved a collection efficiency of 93.71 percent as it collected a total of P9.28 trillion as of end-September.
Part of the uncollected accounts are from Lanao del Sur Electric Cooperative Inc. (Lasureco) and Maguindanao Electric Cooperative Inc. (Magelco).
“We are happy to say there are payments being made, whereas in the past there was none. We came up with an arrangement wherein we told them you have to give partial payments,” Besido-Garcia said.
Moving forward, the state-run firm has sought the help of the Department of Energy (DOE) to resolve the payment issues of Lasureco and Magelco.
“It’s a decision DOE will have to spearhead on what to do with Lasureco, Magelco. We cannot simply cut the power because we’re also trying to help build Mindanaoans in rebuilding Marawi,” Besido-Garcia said.
“What we’re trying to do is work with DOE. There was an interagency meeting last time, even the office of the executive secretary attended to really look at all the possibilities— what can we do, how can we take over, can the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) help in trying to collect and improve the efficiency in collection,” she said.
PSALM is the agency mandated by EPIRA of 2001 to handle the sale of the remaining state-power assets and the financial obligations of Napocor.
It reduces debts through the privatization of government-owned assets, collection of the proceeds and its effective implementation of its liability management program.
The agency started 2019 with P449.2 billion in outstanding financial obligation, which has gone down to P416 billion as of end-October.