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Manila Bulletin devider Business devider Trade & Industry devider PSALM slashes debt by ₱13 billion in 2025, boosted by CBK hydro sale

PSALM slashes debt by ₱13 billion in 2025, boosted by CBK hydro sale

Published Feb 11, 2026 04:44 pm
State-run Power Sector Assets and Liabilities Management Corp. (PSALM) reduced its financial obligations by ₱13.4 billion last year, driven by the successful privatization of a major hydropower complex and continued collections from power-supply contracts.
In a statement on Wednesday, Feb. 11, PSALM said the company’s outstanding balance fell to ₱260.6 billion at the end of last year from ₱274 billion in 2024.
The primary driver for the debt reduction was the sale of the Caliraya-Botocan-Kalayaan (CBK) hydropower plant complex. The facility was acquired for ₱36.3 billion by the Thunder consortium, a group led by Aboitiz Renewables Inc. in partnership with J-Power and Sumitomo Corp.
The complex, which includes the 39.37-megawatt Caliraya, the 22.91-megawatt Botocan, and the 734.36-megawatt Kalayaan pumped-storage plants, was formally turned over to the Aboitiz-led group earlier this week.
Beyond the hydropower sale, PSALM credited the decline in its dues to steady revenue from its concession agreement for transmission assets and the administration of Independent Power Producer Administration contracts. The agency also generated cash through the auction of various real estate holdings.
Dennis Edward Dela Serna, PSALM, president and chief executive officer, said the results place the agency in a stronger position to fulfill its mandate before its scheduled dissolution. The agency’s life was extended to ensure it could clear the remaining liabilities of the Philippine energy sector.
Dela Serna said PSALM remains committed to cutting its debt further through "innovative" asset management and continued privatization efforts.
As of December 2025, PSALM had generated total privatization proceeds of ₱959.6 billion, of which ₱888.7 billion has already been collected. The agency’s current debt load represents a significant retreat from its historical highs.
Since peaking at ₱1.24 trillion in 2003, total financial obligations have been slashed by ₱980 billion, or 79 percent, the agency said.
While the agency continues to shrink its balance sheet, the remaining ₱260.6 billion represents the tail end of a decades-long restructuring of the country's power industry.
PSALM is tasked with managing these remaining liabilities through the sale of the government's remaining power-related assets and the collection of overdue accounts from various electricity distributors and power players.
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