Napocor turnaround reduces deficit of GOCCs to P22B in ’05
The Philippine Star 05/08/2006
The financial turnaround of the National Power Corp. (Napocor) helped reduce the combined deficit of government-owned and controlled corporations (GOCCs) to P22 billion in end-2005 from P85 billion in 2004, an international study showed.
In its latest country report on the Philippines, the Institute of International Finance Inc. (IIFI) said specifically, the fiscal correction has been aided by the state power company’s return to profitability for the first time since 1997.
"The financial turnaround reflects the belated administrative adjustment in generation tariffs, which the government raised by 42 percent in April 2005 and 2.7 percent at the beginning of 2006," the IIFI said.
The study said part of the improvement, however, also reflects the assumption by the National Government at the end of 2004 of P200 billion ($3.9 billion) of external debt owed by Napocor, which was about 40 percent of the company’s total debt.
Recently, the Department of Finance (DOF) approved the transfer of some Napocor bonds to the Power Sector Assets and Liabilities Management Corp. (PSALM), the state agency handling the privatization of Napocor’s assets.
Finance Secretary Margarito M. Teves Jr. has informed the Monetary Board that the DOF has approved the transfer and guarantee of Napocor bonds worth $2.5 billion to PSALM.
The Napocor bonds that were transferred to PSALM include those that have maturities from 2006 to 2028.
These are $250-million certificates due in 2018; $191.604-million new guaranteed bonds due in 2006; $299.548-million new guaranteed bonds due in 2028; $159.867-million new guaranteed bonds due in 2016; $400-million guaranteed floating rate notes due in 2011; $500-million guaranteed bonds due in 2010; and $700-million zero coupon bonds due in 2020.
Under Republic Act 9136 or the Electric Power Industry and Reform Act (EPIRA), PSALM shall take ownership of all existing Napocor generation assets, liabilities, independent power producer (IPP) contracts, real estate and all other disposable assets of Napocor.
EPIRA also states that all outstanding obligations of Napocor arising from loans, issuances of bonds, securities and other instruments of indebtedness shall be transferred to and assumed by the PSALM.
In Dec. 2004, the National Government approved the absorption of some P200 billion of Napocor debts, which is also mandated by EPIRA.
The financial turnaround of the National Power Corp. (Napocor) helped reduce the combined deficit of government-owned and controlled corporations (GOCCs) to P22 billion in end-2005 from P85 billion in 2004, an international study showed.
In its latest country report on the Philippines, the Institute of International Finance Inc. (IIFI) said specifically, the fiscal correction has been aided by the state power company’s return to profitability for the first time since 1997.
"The financial turnaround reflects the belated administrative adjustment in generation tariffs, which the government raised by 42 percent in April 2005 and 2.7 percent at the beginning of 2006," the IIFI said.
The study said part of the improvement, however, also reflects the assumption by the National Government at the end of 2004 of P200 billion ($3.9 billion) of external debt owed by Napocor, which was about 40 percent of the company’s total debt.
Recently, the Department of Finance (DOF) approved the transfer of some Napocor bonds to the Power Sector Assets and Liabilities Management Corp. (PSALM), the state agency handling the privatization of Napocor’s assets.
Finance Secretary Margarito M. Teves Jr. has informed the Monetary Board that the DOF has approved the transfer and guarantee of Napocor bonds worth $2.5 billion to PSALM.
The Napocor bonds that were transferred to PSALM include those that have maturities from 2006 to 2028.
These are $250-million certificates due in 2018; $191.604-million new guaranteed bonds due in 2006; $299.548-million new guaranteed bonds due in 2028; $159.867-million new guaranteed bonds due in 2016; $400-million guaranteed floating rate notes due in 2011; $500-million guaranteed bonds due in 2010; and $700-million zero coupon bonds due in 2020.
Under Republic Act 9136 or the Electric Power Industry and Reform Act (EPIRA), PSALM shall take ownership of all existing Napocor generation assets, liabilities, independent power producer (IPP) contracts, real estate and all other disposable assets of Napocor.
EPIRA also states that all outstanding obligations of Napocor arising from loans, issuances of bonds, securities and other instruments of indebtedness shall be transferred to and assumed by the PSALM.
In Dec. 2004, the National Government approved the absorption of some P200 billion of Napocor debts, which is also mandated by EPIRA.
0 Comments:
Post a Comment
<< Home