Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

7015

House Bill No.

Introduced by: Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

This bill seeks to extend the life of the Power Sector and Liabilities
Management Corporation (PSALM) created under the Electric Power
Industry Reform Act of 2001, otherwise known as the EPIRA Law, for the
purpose of managing the sale, disposition and privatization of the assets and
IPP contracts of the National Power Corporation (NPC). Furthermore, PSALM
was to exist for a period of twenty-five (25) years or until 2026.

After some of the NPC obligations were assumed by the National
Government upon the effectivity of the EPIRA Law, PSALM was to optimally
apply on the remaining NPC obligations the cash flow that would be
generated from the privatization of NPC assets and from the collected
universal charges. The goal was that by the time PSALM expires, the
National Government would be left with very minimal to none liabilities of
NPC.

However, with only eight (8) years remaining and most of NPC
generation assets and IPP contracts having been sold and privatized, the
total financial obligations of PSALM for NPC have not significantly
decreased. Moreover, most outstanding NPC obligations transferred to
PSALM will mature around 2036.

Therefore, it is only fitting and proper for the better management of
the remaining liabilities and IPP contract obligations it assumed from the
NPC, that PSALM’s life be extended by 10 more years beyond 2026 or until
2036.

CARLOS ROMAN L. UYBARRETA
Representative
1-CARE Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

7015

House Bill No.

Introduced by: Representative Carlos Roman

. Uy

AN ACT EXTENDING THE LIFE OF POWER SECTOR ASSETS AND
LIABILITIES CORPORATION (PSALM), 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:

“Section 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 optional 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)]
‘THIRTY FIVE (35) years from the effectivity of this Act, unless otherwise
provided by law, and all assets held by it, all moneys and properties
belonging to it, and alll its liabilities outstanding upon the expiration of
its term of existence shall revert to and be assumed by the National
Government.”

Section 2. Separability Clause. — If any part or section of this Act is
declared unconstitutional, such declaration shall not affect in any manner
other parts or section of this Act.

Section 3. Repealing Clauses. - the provisions of Republic Act No. 9136,
otherwise known as the “Electric Power Industry Reform Act of 2001” shall
continue to have full force and effect except in so far as they are inconsistent
with this Act.


Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved.