Malampaya fund not enough to pay off Napocor debts – Gatchalian
Congress will have to decide how to use the Malampaya fund as it can only partly settle the existing debts of the National Power Corp. (Napocor), Senator Sherwin Gatchalian said.
Data from the Bureau of the Treasury (BTr) showed there was still P193 billion in the Malampaya fund.
But the Power Sector Assets and Liabilities Management Corp. (PSALM), which assumed all of Napocor’s liabilities and obligations, still has a total of P491 billion in debt. Of that amount, P233.24 billion is being proposed to be passed on to consumers through the universal charge.
Gatchalian said Congress is faced with the question of policy and strategy over the Malampaya fund.
“The focus here is to find ways to pay for stranded costs and stranded debts. The proposal of Senator Ralph Recto is to use Malampaya funds for the payment of stranded contract costs and stranded debts. But the fund should be used to develop indigenous resources,” he said.
“We can use it to stop from collecting to the public future stranded costs and stranded debts. It is not enough to cover all but at least, it gives some reprieve to consumers,” he said.