Spain-based transmission giant shows interest in Napocor assets

A Spain-based transmission giant has joined the list of possible bidders for the transmission assets of the National Power Corp. (Napocor), a ranking Napocor official said.

Napocor chief operating officer and National Transmission Co. (Transco) president Asisclo Gonzaga said the local representative of the Spanish firm met with him recently to signify the company’s interest in joining the bidding.

"Their local representative came here recently. It is one of the big players in Europe," Gonzaga said, declining to identify the transmission firm.

Gonzaga said he was informed that the Spanish company is just waiting for the approval of the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act of 2001 (EIRA) or Republic Act 9136 before proceeding to the next step which is to conduct due diligence on the transco assets of Napocor.

Aside from the Spanish firm, various international transmission firms such as the National Grid Plc. of the United Kingdom, Electricite de France have also indicated keen interest in joining the bidding.

There are also some Japanese companies which have shown their interest including Kyushu Corp. and Energy Power Development Corp.

The steering committee composed of the Department of Energy (NEA), National Electrification Administration (NEA), Department of Finance and Napocor submitted to the Joint Congressional Power Commission (JCPC) last Nov. 14 the final draft of the IRR.

Under the power bill, the committee has to complete the IRR and submit the same for JCPC approval six months after the passage of the Power Law or by December this year.

After a series of hearings, JCPC will then endorse the final draft to President Arroyo for approval.

The Power Sector Assets and Liabilities Management Corp. (PSALM) has completed the blueprint for Napocor’s privatization and submitted it to the Power Commission.

The EIRA also calls for the creation of Transco, to be owned 100 percent by PSALM, which will take charge of disposing all the transmission assets of Napocor. At present, Transco has four divisions namely: Mindanao, Visayas and Northern and Southern Luzon.

The National Government has estimated that the sale of transmission assets of Napocor will raise $2.4 billion to $2.7 billion for the government.