By Myrna M. Velasco
State-run National Transmission Corporation (TransCo) suffered gigantic losses of P26.07 billion in revenues on the P57.883 billion concession fees (CF) prepayment made by concessionaire National Grid Corporation of the Philippines (NGCP) back in 2013.
This was expressly stated in the February 28, 2017 letter of newly installed TransCo President Melvin A. Matibag to Power Sector Assets and Liabilities Management Corporation (PSALM) Officer-in-Charge Lourdes S. Alzona.
Matibag noted that the state-controlled firm owner of the transmission facilities incurred actual revenue losses amounting to P12.62 billion for years 2013 to 2016 and an estimated P9.95 billion for years 2017 to 2020.
Onward, the additional estimated revenue loss has been placed at P3.50 billion for years 2021 to 2024.
The TransCo chief executive reiterated that the company suffered loss of revenues “for years 2013 to 2024 in the amount of P26.07 billion due to reduction in the concession fee interest earnings.”
That had been on top of the P3.92 billion outstanding receivables that TransCo had with its 25-year concessionaire at the time – a circumstance that could have prevented PSALM then from accepting the CF prepayment.
Matibag raised an observation made by the Commission on Audit (COA) that “should any deferred payment not been paid when due, any prepayments cannot be applied to any such deferred payment that was not paid.”
He noted that such a prepayment move was in breach of Section 6.07 of the Concession Agreement with NGCP and consequently affecting adversely the financial condition of TransCo.
Matibag thus sought PSALM’s adherence to prudence on any fresh attempt of seeking or accepting NGCP’s offer for another round of prepayment of its remaining concession fees.
“This is to caution PSALM of another prepayment of the deferred payment of the concession fee by NGCP as this will result in additional loss of revenue of P33.52 billion,” Matibag stressed.
Overall, he emphasized that the planned second NGCP prepayment “will cause an adjusted lump-sum revenue loss for P59.59 billion for years 2013-2029.”
Matibag further asked PSALM “to immediately address the issues of the 2013 prepayment and “to ensure that TransCo will be notified of NGCP’s offer to make another prepayment on the remaining CF receivables and be given the opportunity to express its comments and views on the matter and on other concession related agreements that may affect TransCo.”