Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
Introduced by REPRESENTATIVE JOEY SARTE SALCEDA 
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), 
was enacted to ensure the solvency of the-then severely financially National Power Corporation 
(NPC). The 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. 
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. 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). 
Unless PSALM’s privatization thrust is completed, this reversion is a potential fiscal risk that could 
affect our credit standing and the national government’s overall fiscal health – strained as it already 
is by the COVID-19 pandemic and implementation of the Mandanas-Garcia ruling increasing local 
government units’ share of national taxes. 
Certain privatization efforts are also in imminent need of a longer PSALM corporate life. The 
proposed development of the National Power Corporation (NPC) property in Diliman, Quezon 
City, for example, into a mixed-use commercial complex will warrant the corporate life extension 
of state-run corporation. 
October 6, 2021
11:14 am
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The development blueprint initially cast for the 5.195-hectare NPC property aims to convert it into 
a mixed-use commercial strip patterned after the business district metamorphosis of Fort Bonifacio 
Global City. Because of the Covid-19 pandemic, re-adjustments have to be incorporated in the 
earlier crafted privatization design for that real estate asset. 
Given the experience of the Bases Conversion and Development Authority (BCDA) with 
developments such as Fort Bonifacio, whose planning began in 1995, but only started being 
developed into a full-scale master-planned community in 2003, the Diliman property could take at 
least a decade before it realizes its promise as a revenue-driver for the PSALM. 
Considering this and similar developments, it is in the fiscal interest of the state to extend the 
corporate life of the PSALM, to keep the national government insulated from its stranded debts, 
and to ensure that the corporation can pursue its fiscally-positive plans.  
In view of the foregoing, the approval of this bill is urgently sought. 
JOEY SARTE SALCEDA 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
Introduced by REPRESENTATIVE JOEY SARTE SALCEDA 
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: 
Section 50. Purpose and Objective, Domicile and Term of Existence. - The principal 
purpose of the Corporation 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 Corporation shall have its principal office and place of business within Metro Manila. 
The Corporation shall exist [for a period of twenty five (25) years from the effectivity of 
this Act] UNTIL JUNE 30, 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 
expiration of its term of existence shall revert to and be assumed by the National 
Government. 
SEC. 2. Separability Clause. – If any of the sections or provisions of this Act is held 
invalid, all the other provisions not affected thereby shall remain valid. 
SEC. 3. Repealing Clause – - 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 insofar as they are inconsistent with this Act. 
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SEC. 4. Effectivity. – This Act shall take effect fifteen (15) days from the date of its 
publication in at least two newspapers of general circulation in the Philippines. 
 
Approved,