At the same time, the new board of National Power Corp. (Napocor) will also be constituted next week. Under the law, the board will be composed of representatives from various government agencies led by the DOE, Department of Finance, the National Economic and Development Authority (NEDA) and other related government arms.
Sources told The STAR that National Power Corp. (Napocor) chief operating officer Asiselo Gonzaga will be the president of Transco. The same sources added that some of the Napocor employees would also be absorbed into the new company.
Transco, which will still be run by the National Government or be wholly owned by the government-owned Power Sector Assets and Liabilities Management Corp. (PSALM), will take hold of the transmission assets of Napocor, including the right to operate the national transmission system.
Former Energy Secretary Jose Isidro Camacho who is now finance secretary, will chair Transco, the new Napocor board and PSALM.
Eventually, however, Transco will also be privatized as soon as PSALM comes up with its privatization plan.
PSALM is expected to come up with a privatization plan for both the Transco and the generation companies (gencos) of Napocor in about six months. A new genco groupings will also be designed since some assets of Napocor such as the Agus and Pulangi hydro complexes in Mindanao will be exempted from privatization until after 10 years.
The two power plant were apparently included in the previous list of Gencos to be privatized.
Assets of Strategic Power Utilities Group, the island and missionary electrification arm of Napocor, will continue to be operated by the government.
A legislative oversight committee will review the plan and submit an endorsement to President Arroyo.
It is expected that after a year, the bidding for Transco and gencos will take place. This will allow PSALM more time to come up with an impressive privatization package that would be presented to prospective investors during an international roadshow presentation.
A number of European and Asian investors have already indicated their interest to participate in the privatization of Napocor.
It was reported that the National Grid of the United Kingdom is interested to corner the operation and maintenance of Napocor’s transmission backbone.