The Power Sector Assets and Liabilities Management (PSALM) Corporation reported a significant reduction in its financial obligations last year, lowering its outstanding debt to P260.6 billion as of 31 December. This marks a P13.4 billion decline from the P274.0 billion recorded at the end of 2024.

PSALM credited the reduction to proceeds from the sale of the Caliraya, Botocan, and Kalayaan (CBK) Hydroelectric Power Plants, which generated P36.3 billion. Additional contributions came from collections under transmission asset concessions and the administration of Independent Power Producer Administration (IPPA) contracts. The agency also reported a 92.28 percent collection efficiency, equivalent to roughly P15.88 billion in power sales collections.

During the year, PSALM paid P20.0 billion in interest and other charges and remitted P9.0 billion in dividends to the National Government.

“These achievements strengthen PSALM’s financial position geared towards the completion of its mandate within its extended corporate life in support of the Philippine energy sector. PSALM remains fully committed to further reducing its obligations through sustained privatization efforts and innovative asset and liability management strategies,” said PSALM President and CEO Dennis Edward A. Dela Serna.

Since reaching a peak debt of P1.24 trillion in 2003, the agency has reduced its obligations by 79 percent, equivalent to P980.0 billion. Privatization proceeds generated to date total P959.6 billion, with P888.7 billion already collected.

PSALM was established to manage and privatize power assets and liabilities inherited from the National Power Corporation. Its mandate focuses on settling legacy debts and restructuring state-linked power obligations through the sale of assets and strategic management of liabilities.