Proceeds from the sale of National Power Corporation (NPC) assets have already reached P915 billion as of end-March this year but revenue collections only hit P612.41 billion, according to the Department of Energy.
Collections of asset-seller Power Sector Assets and Liabilities Management Corporation (PSALM) from buyers of NPC assets had inched up by P13.466 billion only as of the review period to P612.41 billion compared to end-December 2019 level of P598.944 billion.
“As of March 31, 2020, PSALM through the privatization of generation assets, the transmission business and the IPP contracted capacities, has generated a total of P915 billion, and the actual collection-to-date amounted to P612 billion,” the DOE report stated.
Of the revenues collected, the DOE qualified that the aggregate amount lumped in “interest income on placements,” which in turn had been utilized for the liquidation of the financial liabilities transferred to PSALM.
For the generating assets, total proceeds and collection had gone up by P2.975 billion as of first quarter this year to P163.88 billion from last year’s P160.905 billion.
The independent power producer administrators (IPPAs) of the privatized NPC power supply contracts, turned in additional proceeds of P8.602 billion by March this year, to P262 billion from P253.398 billion last December.
Out of the total takings of P482.50 billion from the IPP deals privatization, the remaining proceeds yet to be remitted to PSALM hover at P204.88 billion.
On the concession fee payments for the privatized power transmission facilities, remittance had been at P185.87 billion as of end-March, leaving a balance of P78.93 billion as reckoned from the P264.80 billion proceeds on the 25-year concession arrangement for the National Transmission Corporation (TransCo) assets.
The energy department emphasized that PSALM “utilizes its privatization proceeds to cover maturing obligations, such as regular debt service, debt prepayment, IPP obligations, TransCo operating expenses and other privatization-related expenses.”
Within this year’s review period, debt payments by PSALM summed up to P662.80 billion, which fused in P66.09 billion as debt prepayment; P391.12 billion as regular debt service; and P200.53 billion as lease obligations.
The state-run firm also spent P5.01 billion for other items, including privatization-related outlay; and operating expense allotment for TransCo at P50 million.
Onward, PSALM is scheduling series of auctions for real estate assets so it can build up its cash hoard that in turn could give it the leverage to pay more of the financial obligations falling due.
The next major privatization activity for the government-run company is the divestment of the 650-megawatt Malaya thermal power plant scheduled for bidding this week.