Nueva Vizcaya Governor Jose Gambito (seated, center) and PSALM top officials flash the victory sign after an earlier meeting regarding the payment of Transfer Tax to the provincial government. The PSALM has paid P213 million to the province of Nueva Vizcaya covering its transfer tax, penalties and surcharges. (PIA Image)
BAYOMBONG, Nueva Vizcaya (PIA) — The Power Sector Assets and Liabilities Management Corporation (PSALM) has paid P213 million Transfer Tax to the provincial government here for operating the Casecnan Multi-Purpose Irrigation and Power Project in Alfonso Castañeda town.
The windfall collection also covers penalties and surcharges imposed by the provincial government to the PSALM.
The P213 million payment came with the issuance of Tax Ordinance No. 2023-31 by the Nueva Vizcaya Provincial Board, granting relief to Real Property owners from the payment of interest and surcharges or penalties for delinquent taxes on transfer of real property ownership.
The P213 million payment includes P153,843,647.22 in transfer tax and P50 million in surcharges and penalties.
The transfer tax was imposed after PSALM took over the operations of the CMIPP in Alfonso Castañeda in December 2021.
Rhoda Moreno, Provincial Treasurer, said the transfer tax is based on the fair market value of Casecnan, as assessed by the Provincial Assessor’s Office.
The CMIPP, previously operated by CE Casecnan Water and Energy Company Inc., a subsidiary of the US-based Cal Energy Group of Companies, has been a significant project in the region since its development began in 1994.
The Build Operate Transfer contract between the Philippine Government and CE Casecnan expired in December 2021.
Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, PSALM was created as a government-owned and controlled corporation (GOCC) mandated to take ownership of all existing power generation assets, independent power producer contracts, real estate, and other disposable assets, and to assume all liabilities and obligations of the National Power Corporation.
Nueva Vizcaya Gov. Jose Gambito hailed the provincial board’s move as it paved the way for the immediate payment of the Transfer Tax by the PSALM.
He said the PSALM tax payment to the province is a crucial milestone for Nueva Vizcaya since it reflects the result of persistent efforts and strategic negotiations.
Gambito said the provincial government is committed to collecting all due taxes, which will enhance the province’s financial standing and increase its ability to fund important development projects.
He assured Novo Vizcayanos that the money collected by the provincial government will be used to fund the LGU’s flagship projects, dubbed as Gayyem ti Umili Projects which include the ‘Kalsada ti Kabanbantayan’, ‘Free Wifi ti Umili’, Silaw ti Umili, Padanum ti Umili, Program on pension to indigent elderlies and the upgrading of provincial managed hospitals.
One of the PSALM – operated CMIPP facilities in Alfonso Castañeda, Nueva Vizcaya. (Photo Courtesy of CMC)
“This is people’s money. We owe it to the people to ensure that every peso is spent wisely and transparently. I assure you that this administration is committed to upholding the highest standards of accountability. We will ensure that these funds will be used for the benefit of the Vizcayanos and will contribute significantly to the development of our province”, Gambito said.
CMIPP is a water diversion scheme for hydropower generation and irrigation purposes. It consists of two river weirs, with long term diurnal storage in the head ponds and intake works on the rivers Casecnan and Taan Rivers and the excavation of a 25 km long transbasin tunnel to divert water from the intakes into the Pantabangan Reservoir.
The design flow capacity of the transbasin tunnel and ancillary facilities is 80 m3/sec. before flowing into the Pantabangan reservoir, water will generate electrical energy.
The installed capacity is 150 MW and the estimated energy generation is 730 GWh/year. (BME/PIA NVizcaya)
