ALFONSO, Cavite—Government-run Power Sector Assets and Liabilities Management Corp. (Psalm) is looking at prepaying some $300 million worth of yen-denominated loans of the National Power Corp. (Napocor) within the year.

“The prepayment plan forms part of the $2.4 billion the Department of Finance  has allowed to restructure this year,” Jose C. Ibazeta, PSALM president, told reporters at the Economic Journalists Association of the Philippines-San Miguel Corp. annual seminar at the SMC Management Training Center.

The PSALM official expressed hope that they could be able to prepay the $300 million, which are mostly yen-denominated loans.

Ibazeta said PSALM has already been given a go-signal by the fiscal and monetary authorities to undertake the prepayment and that it would be able to prepay the debts using the proceeds from the privatization of Napocor generation assets set for the year.

This year, he said, PSALM expects to raise $1.9 billion from the sale of the Napocor transmission and generation assets.

“We believe we are in a good position to lower the Napocor debts,” the PSALM chief said.

 He said based on the latest figure, Napocor’s debts now amount to $7.2 billion.

Ibazeta said bulk of the proceeds are expected to come from the “full payment” of US-based AES Corp. for its purchase of the 600-megawatt Masinloc power facility in Zambales.

Ibazeta revealed that AES-led Masinloc Power Partners Corp. is expected to sign an agreement to pay the entire $930 million this week.

In 2007 PSALM prepaid Napocor’s debt amounting to $174 million worth of yen-denominated loans of Napocor.

PSALM said two of the loans amounting to ¥7.3 billion and ¥8.8 billion are expected to mature in 2027 and another ¥1.2 billion will mature also in 2025.

PSALM said the three loans amounting to ¥16.887 billion of Napocor were given in 1995 and 1997 by the Japan Bank for International Cooperation-Overseas Economic Cooperation Fund   to finance a number of transmission projects.

Under the Electric Power Industry Reform Act, PSALM is mandated to prepay the loans of Napocor, which is envisioned to improve the liability profile of Napocor apart from easing the country’s debt burden.

ATTUNED to its thrust of bidding out its interests in several utilities and companies, the government is currently contemplating whether it will sell out Philippine National Oil Co.’s (PNOC) 40-percent interest in local refiner Petron Corp.

THE ailing garments industry, now facing tougher times with the economic slowdown in the US, its main market, has asked the government to put up a unit similar to the defunct Garments and Textile Export Board (GTEB) that will help in the marketing efforts abroad and in the gathering of industry data globally.

ALFONSO, Cavite—Government-run Power Sector Assets and Liabilities Management Corp. (Psalm) is looking at prepaying some $300 million worth of yen-denominated loans of the National Power Corp. (Napocor) within the year.

SPEAKER Prospero Nograles has expressed support for a new wage increase even as he urged the regional tripartite wage boards to meet immediately to come up with regional rates calibrated to enable both the employees and the employers to cope with the existing economic situation.

Amid problems hounding the agriculture sector due to soaring rice prices, the National Irrigation Authority (NIA) continues to post cost increases for two more ongoing foreign-assisted projects, according to documents from the National Economic and Development Authority (Neda).

OIL companies have again adjusted the price of diesel, gasoline and kerosene by 50 centavos a liter to further reflect the continuous surge of world oil prices.