Power Sector Assets and Liabilities Management Corporation (PSALM)

Status: operative
Confidence: high

PSALM is a government-owned and controlled corporation (GOCC) created under the Electric Power Industry Reform Act (EPIRA, RA 9136, 2001) with three primary mandates: (1) privatization of NPC’s generation assets and TransCo’s transmission assets; (2) management and liquidation of assumed financial obligations; and (3) administration of Universal Charge (UC) collection.

Corporate life expires June 2026. PSALM is preparing a restructuring plan for an extension of its corporate life [PEP 2023-2050 Vol. III, Section D, p.49, 2023].

Statutory Basis (Sections 49–55, RA 9136)

PSALM Corp. was created by Section 49 of EPIRA to take ownership of all NPC generation assets, liabilities, IPP contracts, real estate and disposable assets. All NPC financial obligations transferred within 180 days of EPIRA’s approval [RA 9136, Section 49, 2001].

Purpose (Section 50): Manage the orderly sale, disposition and privatisation of NPC assets with the objective of liquidating all NPC financial obligations and stranded contract costs optimally [RA 9136, Section 50, 2001].

Corporate life (Section 50): 25 years from EPIRA’s effectivity — until 26 June 2026. Upon expiration, all remaining assets, moneys, properties and outstanding liabilities revert to and are assumed by the National Government [RA 9136, Section 50, 2001].

Board (Section 52): DOF Secretary (Chairman), Budget Secretary, Energy Secretary, NEDA Director-General, Justice Secretary, Trade Secretary, and PSALM President (ex officio). Quorum: four members; decisions require majority of three present [RA 9136, Section 52, 2001].

Key powers (Section 51): Privatise NPC assets and IPP contracts; appoint IPP Administrators through public bidding; calculate stranded costs as basis for Universal Charge; liquidate stranded contract costs; collect, administer and apply NPC’s share of the Universal Charge; borrow and issue bonds (all debts must be paid before end of corporate life) [RA 9136, Section 51, 2001].

Privatization Progress (as of June 2023)

82.0% of owned generating plants, independent power producer (IPP) contracts, and decommissioned plants successfully privatized
Privatization proceeds collected: PhP 33.7 billion from winning bidders
Cash dividends remitted to National Treasury: PhP 2.6 billion
Most significant recent transaction: Casecnan Hydroelectric Power Plant (CHEPP) auctioned May 2023 for USD 526 million; financial closing targeted December 2023

[PEP 2023-2050 Vol. III, p.49, 2023]

Liability Management (as of June 2023)

Financial obligations reduced by PhP 40.6 billion (11.0% reduction) — from PhP 355.9 billion (June 2022) to approximately PhP 315.3 billion (June 2023) [PEP 2023-2050 Vol. III, p.49, 2023].

Universal Charge Administration

PSALM collected and disbursed a total of PhP 21.3 billion in UC funds to UC beneficiaries. UC beneficiaries include electric cooperatives (ECs), NPC-SPUG, and stranded costs from IPP contracts [PEP 2023-2050 Vol. III, p.49, 2023]. See Universal Charge for Missionary Electrification (UC-ME) .

Near-Term Programs

Remaining Asset Divestment:

Caliraya-Botocan-Kalayaan (CBK) hydropower facility
Mindanao Coal facilities
Mount Apo geothermal facilities
Agus-Pulangui Hydropower Complex: bid-out and rehabilitation via concession (to optimize generation capacity)

Real Estate Disposals:

Properties in Bagac, Sucat, and Baguio set for sale
Non-IPPA areas in San Manuel and San Nicolas, Pangasinan (potential RE project sites)
Diliman property: redevelopment via joint venture into mixed-use commercial estate (energy-efficient buildings)

Ongoing:

Regularly apprise NEA of EC obligations status
Collect proceeds from asset privatization, UC-Stranded Debt (UC-SD), plant revenues, and Murang Kuryente Act (MKA) allocations

[PEP 2023-2050 Vol. III, p.49, 2023]