The public company Power Sector Assets and Liabilities Management Corp. (PSALM) has so far reduced its financial obligations by 182.8 billion pesos under the Duterte administration, the Ministry of Finance (DOF) announced on Friday.
Irene Joy Besido Garcia, President and CEO of PSALM, recently reported to Finance Secretary Carlos Dominguez III that their financial dues have risen from 537.9 billion pesos in mid-2016 to 355.2 billion pesos at the end of of 2021.
“We plan to further improve this by aiming to bring it down to around 335.9 billion pesos before President Duterte leaves office at the end of June this year,” Garcia told Dominguez, who chairs the board. from PSALM.
In total, a total of 202 billion pesos will be cut from PSALM’s financial obligations when Mr. Duterte steps down, Garcia said.
“Last year, PSALM managed to reduce its financial obligations by 26.5 billion pesos – repaying 4.1 billion pesos of debts and 22.4 billion pesos of rental obligations owed to producers of independent electricity – from 381.7 billion pesos at the end of 2020,” she said.
“PSALM’s total revenue in 2021 from its services and business revenue; actions, donations, subsidies; and earnings amounted to 79.5 billion pesos, which is 27% higher than the 62.4 billion pesos revenue it recorded at the end of 2020,” she added.
Garcia said PSALM also tempered the increase in its operating expenses to just 2%, while “overhead costs were less than 5% of its total revenue as the company was able to implement substantial cost-cutting measures, while increasing revenue collection through successful privatization. activities and higher energy sales.
“All of these strategies led PSALM to achieve a net surplus of 8.9 billion pesos in 2021, up 6.7 billion pesos or 293% increase from its net surplus of 2.3 billion pesos in 2020,” Garcia said.
—BEN O. DE VERA
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