Transco auction set at end of February
Monday, January 17, 2005
The Power Sector Assets and Liabilities Management Corp. (PSALM) will auction the National Transmission Corp. (Transco) by end-February and award the contract to operate the country's large network of transmission lines by June.
A ranking official of Transco, who declined to be named, yesterday said PSALM had already laid out the schedule previously agreed with Malacañang.
Transco, a spin-off firm tasked to operate the country's high-voltage transmission network, is valued at around $2 billion.
"More or less, that is already the schedule given by the Cabinet to PSALM.," the official said.
PSALM President Raphael M. Lotilla earlier said the firm could privatize Transco by first quarter this year.
He had previously targetted the sale before end-2004. PSALM is the government firm tasked to dispose of all of the generation, transmission and related assets of cash-strapped National Power Corp. (Napocor).
Three groups have signified their intention to operate Transco, he said. He declined to identify the firms but indicated that a new group may have expressed interest to bid. "I think there is a new one.
According to them [PSALM], they have written those who have signified their intentions before and that three have already responded," the official said.
Any other interested firms still have until Feb. 28 to firm up their decisions to bid, he said. "We are very much ready to have them [concessionaire] if they're around," the official said.
The winning concessionaire will be allowed to operate Transco for 25 years, renewable for another 25 subject to performance conditions.
The government will require at least 25% of the enterprise value of the business as upfront payment upon closing of the transaction. Ownership of the company and its transmission assets will remain with the government.
Meanwhile, Transco last week completed the upgrade of its 230-kilovolt (kV) Biñan-Dasmariñas transmission line, in effect relieving long-standing transmission line congestion in South Luzon.
The upgrading will effectively secure the supply of electricity to Metro Manila, Laguna, Cavite and other load centers in Luzon for the next five years, Transco president and Chief Executive Alan T. Ortiz said in a statement. -- Bennet S. Sto. Domingo
posted by philpower @ 6:38 PM,
