Transco sells assets worth P33M
Monday, February 21, 2005
State-owned National Transmission Corp. (Transco) on Friday sold sub-transmission assets worth P33 million to Aklan Electric Cooperative (Akelco).
Energy Sec. Vincent S. Perez, Jr. said the recently-inked agreement marks the recovery of Akelco which serves the island of Boracay, a world-class tourist destination in the Philippines. "This event is a barometer of how much electricity service has improved in the province and should reiterate President Gloria Macapagal Arroyo's commitment to provide reliable power to Boracay even as the island tries to manage the continuing tourism boom," he said in a statement.
Transco said it would divest 185 structures along the 21.75-circuit kilometer Nabas-Caticlan 69-kilovolt line while Akelco will be paying a 50% down payment upon approval of the contract by the Energy Regulatory Commission. The remainder will be paid over a period of 10 years.
Transco operates the country's large network of high-voltage transmission lines.
It had so far signed purchase agreements with 13 electric cooperatives and distribution utilities, bulk of which were finalized after an information campaign in June 2004.
As required by the Electric Power Industry Reform Act of 2001, Transco is looking to fully divest ownership of sub-transmission lines, usually rated at 69 kilovolts and below, this year.
"The divestment process is another big step towards providing better service to consumers who stand to benefit from our commitment to completely divest our sub-transmission facilities. This would ensure the continued quality, reliability, security, and affordability of electricity," Transco President Alan T. Ortiz said.
Due to poor collection system, high systems loss and mismanagement, Akelco was earlier classified a bottom dweller or Class E cooperative and needed the intervention of the National Electrification Administration (NEA) and the Department of Energy to save it from total collapse. -- Bennet Sto. Domingo
posted by philpower @ 8:33 AM,
