PSALM extends TransCo pre-qualification
Saturday, September 16, 2006
By MYRNA M. VELASCO
At least five of the interested parties to bid for the 25-year concession deal of the National Transmission Corporation (TransCo) have sought another extension on the deadline of submission of prequalification requirements.
Given that, the Power Sector Assets and Liabilities Management Corporation (PSALM) noted that it has acceded to another deadline extension of two weeks to September 28 from September 15.
Receiving at least five requests for another extension, PSALM noted that it "considered the best interest not only of the government but also of the participating parties in stretching the deadline."
For one, the company divulged that one of the prospective bidders is prepared to submit most of the prequalification documents, but its principal and potential partners have sought for a little more time, which would go beyond the prequalification deadline for them to address concerns on technical and financial aspects of their bid.
As the investor-groups are at the thick of preparing their bids at pre-qualification process, some parties have already advanced their bids to initial due diligence process.
It was learned that the two groups, State Grid of China and SNC-LavalinHydro Quebec group of Canada were the first ones to seek management presentations from TransCo earlier this month.
Most of the questions reportedly raised were on regulatory uncertainties and also on the rate-setting scheme.
At the extended prequalification deadline, PSALM president Nieves L. Osorio noted that "we want to ensure that two or more parties will participate in the bidding."
She added that it will most benefit the country if there are more parties that will make it to bidding; as she stressed that "it will be most unfortunate if only one party will show up for the prequalification process because the bidding will automatically be declared a failure."
The PSALM chief executive also bared that they are working on making the terms of reference a lot clearer, so that "transparency is maintained in all stages of transaction."
She added that with more parties that can move to pre-qualification stage, "this would encourage more competition, resulting in the best possible terms for the privatization of the transmission facility."
PSALM likewise noted that another prospective bidder asked for more time to complete the arrangements necessary to submit a prequalification proposal in accordance with PSALM’s bidding procedures.
"A bidder from Asia sought the extension to accommodate the request of a group that wants to join the consortium being formed to bid for the TransCo concession," the company said.
posted by philpower @ 10:06 AM,
