Government receives 10 proposals for transmission assets of Napocor

CAGAYAN DE ORO CITY — The government has received about 10 proposals from Asian and European firms to buy the transmission assets of the National Power Corp. (Napocor), a senior official said.

Edgardo del Fonso, president of the Power Sector Assets and Liabilities Management, told reporters prospective buyers wanted to assess the regulatory environment and see if the assets were in good condition before making firm commitments.

"We have received a handful of proposals from various investors, at least eight to 10," Del Fonso said on the sidelines of a public hearing on the proposed rules to be adopted for the privatization of Napocor.

Del Fonso’s company was formed recently to oversee the sale of the transmission and generation assets of the state-owned power company.

"They (prospective investors) are looking for some preconditions before they make their final commitment here," Del Fonso said.

"They will have to see if the regulatory environment is already set up, the assets are in good condition, the implementing rules and regulations are approved, and the wholesale (electricity) spot market is established."

He declined to identify the 10 prospective buyers.

Napocor officials previously said Britain’s National Grid, Electricite de France, Electric Development Corporation of Japan and Kyushu Corporation were among the firms which had expressed keen interest in its transmission assets.

They also said Napocor’s transmission assets, worth between $2.4 billion and $2.5 billion, would be sold in the first quarter next year.

This would be followed by the sale of the power firm’s generation assets, which were expected to fetch about $5 billion. – Donnabelle Gatdula