The Power Sector Assets and Liabilities Management Corp. (PSALM) confirmed on Monday the receipt of a P8.76 million as payment from the local government of Naga City, Cebu, for the acquisition of a 466-square-meter property in the province.
The PSALM said the LGU plans to use the property in Barangay Colon for the construction of an access road intended to facilitate the development of a seaport. This follows the signing of a memorandum of agreement (MOA) between PSALM and the Naga City LGU in January, along with the execution of a deed of transfer.
The transaction is part of PSALM’s ongoing effort to privatize government-owned assets and use the proceeds to settle financial obligations inherited from the National Power Corporation (NPC).
PSALM said proceeds from asset sales directly contribute to reducing the corporation’s financial liabilities. As of January 2025, PSALM’s financial obligations total P272.15 billion.
In addition to asset sales, PSALM recently reduced its real property tax liabilities for 2024 by 81.4 percent, saving approximately P509.94 million. This was made possible by the approval of Executive Order No. 83, which offers tax relief for power generation companies under build-operate-transfer (BOT) contracts with government-owned and controlled corporations.
The sale of the Naga City lot and the tax reduction initiative are part of PSALM’s broader strategy to stabilize its finances while supporting local infrastructure development.
