Articles worth reading

Twitter launches dedicated search prompt for HIV 

account_balanceMetro Manila access_time5 days ago

Twitter today launched another global expansion of our #ThereIsHelp notification service with a dedicated search prompt for HIV-related information across Asia Pacific and the Americas: Brazil, Hong Kong, Indonesia, India, Japan, Malaysia, Philippine...

8,265 Muntinlupa residents receive jabs on Nov. 30

account_balanceMuntinlupa access_time5 days ago

On the second day of the “Bakunahan Bayanihan” National Vaccination Days campaign, the local government of Muntinlupa has reached its daily target on vaccination coverage anew with more than 8,000 individuals inoculated. The Muntinlupa C...

Photo Courtesy of csrwire.com

House approves bill on public schools of the future

account_balanceMetro Manila access_time4 days ago

A measure establishing Public Schools of the Future in Technology to advance digital technology and innovation has hurdled final reading approval at the House of Representatives, according to a report by Philippine News Agency. During Wednesday...

Metro News

Solon pushes for longer corporate life of PSALM 

account_balanceMetro News account_circleMylene Santos chat_bubble_outline0 Comments

The chair of the House Committee on Energy on Friday pushed for the extension of the corporate life of the Power Sector Assets and Liabilities Management Corporation (PSALM) to avoid “serious fiscal consequences” for the government, according to a report by Philippine News Agency.

Pampanga (2nd District) Representative Juan Miguel Arroyo said the government may have to shoulder PHP198 billion in debts from PSALM's liabilities unless its corporate life, which is expiring on June 26, 2026, is renewed.

House Bill 10006 proposes to extend the government corporation's charter for another 50 years, or until June 26, 2076.

"The government must not wait until the next administration to extend PSALM’s corporate life," he said in a statement.

Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA), was enacted in 2001 to ensure the solvency of then severely financially troubled National Power Corporation (NPC).

PSALM, which was established through the EPIRA, has the principal mandate of managing the orderly sale, disposition, and privatization of the NPC generation assets, real estate and other disposable assets, and Independent Power Producer (IPP) contracts to optimally liquidate all NPC financial obligations.

The financial obligations include stranded debts and stranded contract costs, which were transferred to and assumed by PSALM, pursuant to the EPIRA.

At the end of PSALM’s life, all its assets and outstanding debts, and IPP contract costs will revert to and be assumed by the national government.

"The remaining five years of PSALM’s corporate life may not be enough to complete the framework for the national government’s plans for its assets," he said.

He said there are remaining power assets and real-property assets that need to be privatized by PSALM, and that the extension of its corporate life would allow more time for it to complete the privatization of its remaining power plants and IPP contracts.

House Ways and Means Committee chair, Albay (2nd District) Representative Joey Salceda, said the Covid-19 pandemic has delayed the privatization efforts of PSALM.

“If PSALM’s debt is not isolated from those of the national government, however, we would see an instant increase in the national government debt stock of at least P198 billion, given the delays in the privatization efforts,” Salceda said in a statement.

Salceda noted that unless PSALM’s privatization thrust is completed, this reversion is a potential financial risk that could affect the country's credit standing and the national government’s overall fiscal health.

He said that certain privatization efforts are also in imminent need of a longer PSALM corporate life.

He cited as an example the proposed development of the NPC property in Diliman, Quezon City into a mixed-use commercial complex, which would warrant the corporate life extension of the state-run corporation.

“The development blueprint initially cast for the 5.195-hectare NPC property aims to convert it into a mixed-use commercial strip patterned after the business district metamorphosis of Fort Bonifacio Global City. Because of the Covid-19 pandemic, re-adjustments have to be incorporated in the earlier crafted privatization design for that real estate asset,” Salceda said.

He said the Diliman property could take at least a decade before it realizes its promise as a revenue-driver for the PSALM.

“Considering this and similar developments, it is in the fiscal interest of the state to extend the corporate life of the PSALM, to keep the national government insulated from its stranded debts, and to ensure that the corporation can pursue its fiscally positive plans," Salceda said.


date_rangeDate Published
1 month ago
shareShare article
folder_openArticle tags
content_copyCategorized under

Share your thoughts with us

Related Articles

IATF evaluates alert level in NCR 

account_balanceMetro Manila chrome_reader_mode2 hours ago

The Department of Health on Tuesday said the Inter-Agency Task Force is looking into whether it is the right time to lower the alert level in the National Capital Region (NCR) amid the threat of the Omicron variant, according to a report by GMA News....

543 new Covid cases reported on Dec. 16

account_balanceMetro Manila chrome_reader_mode19 hours ago

The Department of Health (DOH) reported 543 new COVID-19 cases on Monday, pushing the country’s case tally to 2,835,154, according to a report by CNN Philippines. There are 13,548 active cases, or 0.5% of the overall count. The DOH said 1,063...

Navotas declares tax amnesty

account_balanceNavotas chrome_reader_mode4 days ago

Mayor Toby Tiangco Thursday signed City Ordinance No. 2021-62 or the General Pandemic Amnesty Program. Under the ordinance, penalties, interests, surcharges and any other additional fees incurred from January 2020 – December 2021 on all unpaid...

Active Covid-19 cases dip to 15,188

account_balanceMetro Manila chrome_reader_mode4 days ago

The country's total number of recovered coronavirus disease 2019 (Covid-19) cases has reached 2,769,533 after 684 new recoveries were reported on Thursday. In its latest case bulletin, the Department of Health (DOH) noted that recoveries account...

Let's Stay Connected Like us on our Facebook page.
×
Click on the article to continue reading
Quezon City adopts no contact apprehension system Red Cross pushes saliva test Vaccines from COVAX to arrive in Q1 Makati Shangri-La to close doors on Feb. 1 Cities in NCR to start vaccination simultaneously Mother, girlfriend of Filipino infected with UK variant also test positive Send Press Release MNC Facebook Page MNC Twitter Page MNC Instagram Page LGU Spotlight Barangay Front Business Sports Entertainment Metro Gen Metro Feature