Manila: Department of Energy (DOE) Secretary Raphael Lotilla on Friday welcomed the 10-year extension of the Power Sector Assets and Liabilities Management (PSALM) Corp. for the domestic power sector.
According to Philippines News Agency, the measure amending Section 50 of the Electric Power Industry Reform Act of 2001 (EPIRA) became law on April 18 without the signature of President Ferdinand R. Marcos Jr. This extension is significant as it facilitates the rehabilitation of the Agus-Pulangi hydropower complex in Mindanao. Lotilla stated that this rehabilitation would restore at least 400 megawatts of renewable energy and mitigate safety and flooding risks to nearby communities.
Lotilla explained that the rehabilitation of the Agus-Pulangi facility was stalled during the previous administration due to the lack of a viable counterparty, as PSALM's corporate life was set to end in 2026. The enactment of Republic Act 12179 secures PSALM's continued operation, allowing it to fulfill its mandate of privatizing its remaining assets.
Furthermore, the new law provides additional time for PSALM to manage its outstanding financial obligations, preventing the transfer of its liabilities to the national government in 2026. This extension will also enable PSALM to secure more favorable borrowing terms and negotiate long-term financing arrangements.
