TransCo sale to be delayed after change of leadership
Monday, October 02, 2006
By MYRNA M. VELASCO
The scheduled privatization of the National Transmission Corporation (TransCo) is seen thrown into doldrums with its new chief executive’s bid for learning curve which has already started hampering prospective concessionaire’s request for management presentations as part of due diligence activities.
One of the interested parties disclosed to media that while there are other TransCo executives who can answer some of the technical and operational questions raised, it is critical that the company’s top official shall be there to lay down the general direction of the company’s operations, as TransCo will be the counter-party in the 25-year concession agreement.
It would be noted that TransCo president Arthur N. Aguilar just took office last September 25; and after barely three days in office, he was already saddled with the worst blackout in Luzon since the power crisis years of the 90’s; one thing that his predecessor Alan Ortiz never experienced in his four years of service to the company.
The tripping of TransCo’s transmission lines triggered the massive power outages that caused billions of economic losses to the country.
"TransCo privatization will be delayed. It will not happen in November," one of the interested investors has emphasized, noting that they would have to wait for the company’s new CEO to learn so that some of their major questions get answered.
Adding to the nervousness of the investors was the reported plan of Malacañang to also replace Power Sector Assets and Liabilities Management Corporation president Nieves L. Osorio anytime soon. PSALM is the government-run entity tasked to privatize TransCo and the generation assets of the National Power Corporation.
PSALM has slated September 28 as the deadline for the submission for prequalification proposals, but since that day was declared as a forced holiday because of typhoon "Milenyo," announcement was not made if that has been re-scheduled.
The vulnerability of the transmission system is also being watched closely by prospective investors, as it was indicated that this might thrive as one of the factors to pull down the assets’ valuation.
The government originally targetted to fetch $ 2.0 billion from the offer of the 25-year concession deal; and until this time, this has not been re-appraised.
Aguilar is facing the toughest challenge of helping ensure that TransCo gets privatized this year; and his operational direction should be able to sustain the interest of the 12 parties that have expressed interest to participate in the bidding.
There have been several concerns raised by investors, including the need to secure a Congressional franchise as a pre-condition for the transaction to be finalized.
posted by philpower @ 8:18 PM,
