Local energy sector still attractive – IPPs
Friday, March 23, 2007
By Donnabelle L. Gatdula
The Philippine Star 03/23/2007
The Philippine Independent Power Producers Association (PIPPA) assured yesterday that investments in the energy sector remain attractive to both foreign and local investors.
PIPPA made this assurance in the light of a recent survey by the Hong Kong-based Political and Economic Risk Consultancy (PERC) branding the Philippines as the most corrupt country in Asia.
PIPPA president Ernesto B. Pantangco said that continuing reforms in the energy sector have made energy investments more attractive to foreign investors, pointing out that transactions and biddings for power projects are generally above board.
The PIPPA official cited the privatization of PNOC-EDC which yielded good results, attracting very discriminating investors such as the International Finance Corp. (IFC) and the Government of Singapore Investment Corp. Pte. Ltd. (GIC). "This is a clear indication of the investors’ trust and confidence in the energy sector," Pantangco said.
He also noted the recent sale by US energy firm Mirant of its Philippine assets to the Marubeni-TEPCO consortium for approximately $1.3 billion shows the growing confidence of major Asian investors in the country’s energy market.
Likewise, the recent successful privatization of the 112-megawatt Pantabangan-Masiway ($129 million) and the 360-MW Magat ($530 million) hydroelectric plants are concrete proof that energy investments continue to draw investors.
The privatization of state-owned power sector assets is a key element of the Philippine government’s reform program for the sector as embodied in the Electric Power Industry Reform Act (EPIRA). "We are confident that the energy sector can sustain the momentum and remain one of the brightest spots in the Philippines’ economic landscape," Pantangco stressed.
posted by philpower @ 9:04 AM,
