MANILA, Philippines – The Naga Metropolis authorities has accomplished the acquisition of a Energy Sector Property and Liabilities Administration Corp. (Psalm) property within the metropolis for P8.761 million.
In a current assertion, Psalm mentioned Naga Metropolis had remitted the cost for considered one of its land belongings positioned in Barangay Colon. Different wanted documentation had additionally been submitted.
This stems from the memorandum of settlement signed in January by Psalm and the Naga Metropolis authorities involving the 466-square-meter Psalm lot, registered as Lot No. 751.
READ: Psalm saves P510M from Marcos’ tax aid for energy producers
“Naga Metropolis is planning to develop the bought lot into an entry street to facilitate the development of a seaport, being a part of town’s ongoing reclamation challenge,” Psalm mentioned.
“All proceeds from the profitable sale of any Psalm asset might be used to enhance the funds wanted for the settlement of the Company’s assumed monetary obligations,” it added.
The state-run agency is remitted by the Electrical Energy Business Reform Act to settle all of the liabilities and obligations it assumed from Napocor by promoting energy and different disposable belongings.
Its monetary obligations stood at P272.14 billion as of end-January, a 78-percent decline from the height stage of P1.24 trillion recorded in 2003.
Earlier, Psalm mentioned it had saved P510 million following President Marcos’ govt order that supplied tax aid for some energy producers.
In accordance with Psalm, its actual property tax (RPT) liabilities underneath its build-operate-transfer contracts final 12 months had been slashed to P116.52 million from P626.46 million.
Signed in February, Govt Order No. 83 reduces and condones RPT – together with pursuits and/or penalties – assessed on energy technology services and unbiased energy producers underneath BOT contracts.
“The discount and condonation of RPT liabilities underneath EO No. 83 present much-needed monetary aid to Psalm and our accomplice IPPs,” PSALM President and CEO Dennis Edward Dela Serna mentioned.
“This enables us to handle our obligations extra successfully whereas guaranteeing the continual and secure provide of electrical energy,” he added.
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IPPs seek advice from entities engaged in producing electrical energy, that are then bought to energy distributors comparable to Manila Electrical Co. (Meralco).
