The Power Sector Assets and Liabilities Management (PSALM) Corporation significantly reduced its financial obligations (FOs) to PHP260.6 billion as of 31 December 2025, marking a PHP13.4 billion decrease from the PHP274.0 billion recorded at the end of 2024.
In 2025, PSALM also paid PHP 20.0 billion in interest and other charges, and remitted PHP 9.0 billion in dividends to the National Government, reflecting its strengthened financial position and continued contribution to fiscal sustainability.
The improvement was driven by key strategic transactions and operational gains, including:
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The receipt of the PHP36.3 billion purchase price for the Caliraya, Botocan, and Kalayaan (CBK) Hydroelectric Power Plants (HEPPs);
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Steady collections from the concession of transmission assets and the administration of Independent Power Producer Administration (IPPA) contracts;
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The successful privatization of select real estate assets; and
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A strong 92.28% collection efficiency, equivalent to PHP15.88 billion in power sales collections.
“These achievements strengthen PSALM’s financial position as we work toward completing our mandate within our extended corporate life in support of the Philippine energy sector,” said PSALM President and CEO Dennis Edward A. Dela Serna. “We remain fully committed to further reducing our obligations through sustained privatization efforts and innovative asset and liability management strategies.”
Since reaching its peak debt level of PHP1.24 trillion in 2003, PSALM has reduced its financial obligations by PHP980.0 billion, or 79 percent, as of end-December 2025. This substantial decline underscores the Corporation’s disciplined financial management and its long-standing strategy of channeling privatization proceeds toward debt reduction.
To date, PSALM has generated PHP959.6 billion in privatization proceeds, with PHP888.7 billion already collected.
With continued progress in lowering its obligations and advancing key asset privatizations, PSALM moves steadily closer to fulfilling its mandate while contributing to a more resilient and sustainable Philippine energy sector.
