Power Sector Assets and Liabilities Management Corporation (PSALM) (1)

April 30, 2013 FIRB RESOLUTION NO. 005-13 SUBJECT MATTER : Power Sector Assets and Liabilities Management Corporation (PSALM) (1) WHEREAS, the Power Sector Assets and Liabilities Management Corporation (PSALM) is mandated to manage the efficient and orderly sale, disposition and privatization of all existing National Power Corporation (NPC) generation assets, liabilities, Independent Power Producer (IPP) contracts, real estate and all other disposable assets of the NPC under Republic Act No. 9136 (Electric Power Industry Reform Act of 2001); WHEREAS, the conduct of these functions has resulted in the basic Value-Added Tax (VAT) liabilities of the PSALM for the years 2010 and 2011 arising from its collections/revenues from IPP administrators (IPPA), IPPA generation payments, interest income from asset sale receivables, fees from privatization and other income, broken down as follows: Particulars (Amounts in PhP) Receipts from: 2010 2011 Collections/Revenues from IPPAs 21,035,702,879.00 44,772,400,387.00 Interest income from asset sale receivables 424,300,000.00 - Fees from privatization 8,600,000.00 - Other income - power generation 1,431,800,000.00 - Revenues derived from use of facilities 25,952,549.55 - Miscellaneous income 2,340,693.02 - Proceeds from sale of non-power assets 87,990,000.00 - Total Amount Subject to VAT 23,016,686,121.57 44,772,400,387.00 VAT Rate 12% 12% Basic Deficiency VAT 2,762,002,334.59 5,372,688,046.44 Total Deficiency VAT 8,134,690,381.03 =========== WHEREAS, the PSALM does not have the financial resources to settle these tax obligations with the Bureau of Internal Revenue; HTaIAC NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PSALM to cover its Basic Deficiency VAT liabilities for 2010 and 2011 in the amount of EIGHT BILLION ONE HUNDRED THIRTY FOUR MILLION SIX HUNDRED NINETY THOUSAND THREE HUNDRED EIGHTY ONE PESOS AND 03/100 (PhP8,134,690,381.03) only: Provided, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2013 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB