EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
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SENATE
S. B. NO. 2374
31 ?6:05
Introduced by SENATOR VICENTE C. SOTTO III
AN ACT
EXTENDING THE CORPORATE LIFE OF AND STRENGTHENING 
THE POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT 
CORPORATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
9136, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act No. 9136, otherwise known as the Electric Power Industry 
Reform Act (EPIRA), provides that one of the policies of the State is to have an 
orderly and transparent privatization of the assets and liabilities of the 
National Power Corporation (NPC).1 Towards this end, EPIRA created the 
Power Sector Assets and Liabilities Management (PSALM) Corporation in 
2001, a government-owned and -controlled corporation, with a corporate life 
of twenty-five (25) years which is due to expire on June 26, 2026.2
PSALM has the principal mandate of managing the orderly sale, 
disposition, and privatization of the NPC generation assets, real estate and 
other disposable assets, and Independent Power Producer (IPP) contracts to 
optimally liquidate all NPC financial obligations, including stranded debts 
(SD) and stranded contract costs (SCC), which were transferred to and 
assumed by PSALM pursuant to the EPIRA.3 At the end of PSALM’s life, all its 
assets and outstanding debts and IPP contract costs will revert to and be 
assumed by the National Government (NG).'1
One of the generation assets for privatization is the Agus-Pulangi 
Hydropower Plant Complex. This Complex is planned tc be rehabilitated prior 
to privatization to further contribute to energy security and ensure better 
value for the government. Considering that completion of the rehabilitation 
will necessarily extend beyond the original corporate life of PSALM, it is 
imperative that PSALM be legally subsisting and operational during the said
1 See. 2(i), Republic Act No. (RA) 91.16 (Approved: 8 June 2001)
2 Sec. 49 & .50, RA No. 9136 (2001)
3 Sec. 50. RA No. 9136 (2001)
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rehabilitation, including for the duration of any loan related to such 
rehabilitation.
By extending the corporate life of PSALM, it will also be able to manage 
its remaining contractual obligations, particularly those whose terms shall 
end beyond June 2026. The NG will not have to immediately absorb PSALM’s 
outstanding financial obligations by June 2026. The turnover to the NG of the 
financial obligations left unpaid would be delayed and would allow PSALM to 
create a privatization plan that is complete, accurate and well organized. 
Furthermore, the NG would have substantially recovered from the pandemic 
so that the economy will have a bigger absorptive capacity once PSALM’s 
corporate life ends.
A longer corporate life will enable PSALM secure better terms for its 
borrowings for the next several years. PSALM will have more flexibility 
negotiating for better and longer-term financing for better management of 
liquidity risks.
PSALM will be able to maximize and fully utilize the PHP208 Billion 
Murang Kuryente Act (MKA) fund allocation and fully collect the current 
Universal Charge-Stranded Debts (UC-SD) currently being charged to end- 
users. Extending the life of PSALM will provide adequate time until the fiscal 
space of NG will be able to aecommodate a bigger budget under the MKA to 
cover the SCC and SD.
Aside from the reduction, if not elimination, of NPC’s financial 
obligations, the successful privatization of NPC’s assets will help PSALM in 
avoiding operational losses from expensive power plants and IPP contracts. 
Also, once the assets are sold, the government will be able to use the proceeds 
to settle the debts of NPC, thus helping reduce the country's consolidated 
public sector deficit.
This bill extends the eorporate life of PSALM whose corporate existence 
is due to expire on June 26, 2026 in order for the corporation to fully and 
successfully accomplish its mandate.
Given the foregoing, the immediate passage of this measure is urgently 
sought.
lENTE C. SOTTO III


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EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES j 
Third Regular Session 
)
SENATE
S. B. NO.
71 AUG 31 ?6:05
Introduced by SENATOR VICENTE C. SOTTO
AN ACT
EXTENDING THE CORPORATE LIFE OF AND STRENGTHENING 
THE POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT 
CORPORATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 
9136, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
SECTION 1. Section 50, Chapter VI of Republic Act No. 9136, otherwise 
known as the "Electric Power Industry Reform Act of 2001" or EPIRA, is hereby 
amended to read as follows:
"SEC. 50. Purpose and Objective, Domicile and Term of Existence. 
- The principal purpose of the PSALM Corp. is to manage the orderly 
sale, disposition, and privatization of NPC generation assets, real 
estate, and other disposable assets, and IPP contracts with the 
objective of liquidating all NPC financial obligations and stranded 
contract costs in an optimal manner.
The PSALM Corp. shall have its principal office and place of 
business within Metro Manila.
The PSALM Corp. shall exist [for a period of twenty-five (25)-years 
from the-effectivity-of-this Act] until June 26. 2076. unless 
otherwise provided by law, and all assets held by it, all moneys and 
properties belonging to it, and all its liabilities outstanding upon the


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expiration of its term of existence shall revert to and be assumed by 
the National Government. "
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SECTION 2. Separability Clause. - If any part or section of this Act is declared
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unconstitutional, such declaration shall not affect in any manner other parts
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or sections of this Act.
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SECTION 3. 
Repealing Clause. - The provisions of Republic Act No, 9136,
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otherwise known as the "Electric Power Industiy Reform Act of 2001" shall
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continue to have full force and effect, except insofar as they are inconsistent
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with this Act.
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SECTION 4. Effectivity Clause. - This Act shall take effect on the fifteenth day
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following its 
publication in at least two (2) national papers of general
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circulation and in the Official Gazette.
Approved,