04 - Palace hails Napocor's climb out of decade-old financial black hole
Wednesday, April 05, 2006
Malacañang hailed on Tuesday National Power Corporation’s (Napocor) climb out of a financial black hole after 10 years as proof that President Gloria Macapagal-Arroyo is making the right moves for the energy sector.
Napocor, which has been in deep red over a decade, reported an unaudited net income of P16 million in 2005, marking its return to profitability.
Press Secretary and Presidential Spokesperson Ignacio R. Bunye said in a statement credit should go to the entire management and staff of the company for its sound financial management.
"The years of sacrifice have paid off," he said. "While the privatization program has yet to be completed, the good financial performance of Napocor only shows that President Gloria Macapagal-Arroyo’s policies for the energy sector are being proven correct."
The good news of Napocor’s financial performance in 2005 is "coupled with the recent decision of Meralco to finally allow other energy suppliers to supply electricity to its big users, which is a triumph of the policy of deregulation," Bunye said.
Power Sector Assets and Liabilities Management Corp. (PSALM) president Nieves Osorio attributed Napocor’s improved financial position to the firm’s improved fuel mix, better fuel prices, and the increase in rates, which the Energy Regulatory Commission approved in April last year.
Napocor Senior Finance Department manager Lorna Dy said one of the biggest factors that contributed to the recovery is the strengthening of the peso against the greenback.
Bunye also said that Napocor’s good financial performance was a result of the higher revenue collection that the financial market expects from the Reformed Value Added Tax (R-VAT) and higher remittances from some seven million overseas Filipino workers (OFWs).
The President had earlier said that the return of Napocor to profitability signals "an economy that has turned the corner and is poised for takeoff."
She cited the projected increase in American assistance to the country as a mark of confidence "that our reforms are taking root in the midst of gaining confidence and hope."
She was referring to the 1-million US dollars aid to the Philippines which the US Congress approved for developmental projects in the country, a 42-percent improvement from the original proposal of $ 92.7 million.
The new aid package includes a $ 33-million funding for programs supported by Foreign Military Financing (FMF) and Foreign Military Sales (FMS) policies and a $ 17.5-million funding for programs supported by the Excess Defense Articles (EDA) policy.
The US also allocated $ 5 million to enhance the counter-terrorism capabilities of the Philippine National Police (PNP).-- This message has been scanned for viruses and dangerous content by Balita MailScanner, and is believed to be clean.
posted by philpower @ 6:26 AM,
