TransCo raises P2 billion from sale of sub-transmission assets
Saturday, January 20, 2007
By MYRNA M. VELASCO
The aggressive undertaking pursued by the National Transmission Corporation (TransCo) on the divestment of its sub-transmission assets already registered revenues of P2.02 billion, the company has reported.
The latest contract it concluded was that of Ilocos Sur Electric Cooperative Inc. (ISECO) on a lease-purchase deal, but calls for an eventual transfer of ownership of the subtransmission facility to the acquiring electric cooperative.
The deal worth P48.7 million delves with the disposal of 420 structures including the San Esteban-Candon, New Bantay-Sto. Domingo, and the San Esteban-Narvacan junction and take-off lines stretching 42 kilometers.
ISECO is required to pay 20 percent of the purchase price to TransCo upon the contract’s approval by the Energy Regulatory Commission. The balance of 80 percent will be payable in 16 years and nine months.
TransCo president and CEO Arthur N. Aguilar noted that reaching the P2 billion revenue level "is significant development in our aggressive efforts to divest our sub-transmission assets to qualified electric cooperatives," as mandated under the Electric Power Industry Reform Act of Aguilar’s predecessor, Alan T. Ortiz.
To date, Aguilar said all electric cooperatives in District 1 have already entered into divestment contracts with TransCo; and this was made possible with the unrelenting effort of of TransCo’s North Luzon District 1 Office led by its manager Benigno A. Ramos.
The deal with ISECO, according to the company, is already their fourth sale contract with a distribution utility in the Ilocos region after Ilocos Norte Electric Cooperative (INEC), La Union Electric Cooperative (LUELCO) and Abra Electric Cooperative (ABRECO).
ISECO supplies electricity to the cities of Vigan and Candon and the 32 municipalities of Ilocos Sur.
TransCo’s sale of subtransmission assets is among the factors that helped shore up its income. The divestment plan is part of overall strategy to let TransCo concentrate on just the operation of its transmission facilities.
Most electric cooperatives and private distribution utilities that bought sub-transmission assets indicated that this will help in the improvement and expansion of services within their franchise areas.
posted by philpower @ 5:24 AM,
