2 Japanese power firms interested in Napocor

Two Japan-based power firms have indicated plans to participate in the privatization of the National Power Corp. (Napocor), a Japanese Embassy official disclosed.

Japanese Embassy First Secretary Yoshimasa Sakai revealed that Kansai Electric Corp. and Kyushu Electric Corp. are not only interested in Napocor’s assets but in various energy generation activities of the government, particularly micro and mini-hydro projects.

Sakai said the two companies already have an exposure in the local power generating industry. "Kansai is already in San Roque Power Corp. while Kyushu is in Ilijan (power plant)," he said.

Sakai said since the Power Reform Act has yet to be enacted, the two Japanese firms want to focus on micro-hydro aside from mini-hydro projects.

He said, Kyushu, is also eyeing geothermal development projects in the country, particularly in Bicol and Leyte. Kansai, meanwhile, is currently doing a feasibility study on Ambuklao Dam Rehabilitation.

He said the feasibility study is being funded by the Japanese government through its Ministry of Economy, Trade and Industry (METI).

So far, METI has set aside some $1 million for feasibility studies to be conducted in the Philippine energy sector.

Energy Secretary Jose Isidro Camacho said some Japanese electric companies are already inquiring about opportunities locally in the distribution side. He said more opportunities will arise after the passage of the controversial Power Reform Bill in Congress.

"That is very promising because in the power bill, it is not just the privatization of Napocor; it is also to encourage new players at the generating side, at the transmission side, the distribution side. So if you have inquiries from strong companies like the Japanese electric firms, that gives us reason for some optimism," the energy chief said.