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Power debts fall on prepayment efforts


MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to sell state-run power facilities, further reduced the debts of National Power Corp. (Napocor) with the fourth round of loans prepayment this month. In a statement issued on Friday, PSALM said it prepaid two Napocor yen loans worth $184.14 million on September 16, allowing the government to save on interest payments and guarantee fees. Payments were made to Japan Bank for International Cooperation and Asian Development Bank, which extended loans to Napocor for the 600-megawatt coal-fired power plant in Masinloc, Zambales. The plant was privatized in 2007. PSALM’s prepayment efforts have trimmed Napocor’s debt to $5.8 billion this month from $7.01 billion at the end of 2007. PSALM President Jose C. Ibazeta earlier programmed the reduction of Napocor’s yen-denominated debt and shift loans to peso and dollars as the Japanese currency is “getting stronger." Napocor’s existing foreign currency debt has fallen by four percent and hiked its peso-denominated debt by two percent to 13 percent. PSALM will work on the privatization efforts of three more Napocor power plants until the end of 2008. Up for bidding are the Panay-Bohol diesel power complex, the Aplaya-General Santos diesel power facility package, and the Amlan hydroelectric power plant. PSALM is also auctioning off contracts for independent power producers estimated to yield $13 billion for the government. Privatization proceeds are used to settle Napocor’s remaining debts. - GMANews.TV
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