PSALM eyes P77-B from Napocor assets

The Power Sector Assets and Liabilities Management (PSALM) Corp. is likely to generate some $1.5 billion (roughtly P77 billion) from the sale of the transmission assets of the National Power Corp. (Napocor).

The projected proceeds from the sale of Transco was presented by PSALM to the Joint Congressional Power Commission (JCPC). This figure is lower than the earlier estimate of $2.4 billion to $2.7 billion.

Under Republic Act 9136 or the Electric Power Industry Reform Act (EIRA), the JCPC should endorse the implementing rules and regulations (IRR) of the power law to President Arroyo. PSALM, on the other hand, is an entity created to absorb all the assets and liabilities of Napocor.

JCPC is in the process of evaluating the proposed IRR submitted by PSALM and the Department of Energy last month.

Speaker Jose de Venecia told reporters during the induction of the Economic Journalists Association of the Philippines (EJAP) Thursday night said that the JCPC would likely be approved within this week.

The power commission, which is headed by Sen. Renato Cayetano and Lanao del Norte Rep. Cirilo Alipio Badelles, is composed of six members from both the House and Senate.

"We expect to raise anywhere from $500 million to $1.5 billion for the Transco roadshow. We chose to be conservative with the figures," De Venecia said.

PSALM has scheduled the privatization of transmission assets (Transco) of Napocor in the first half of this year. The generation assets, on the other hand, would follow in the last quarter of 2002.

JCPC has been urged to fasttrack the endorsement of the IRRs to President Arroyo, in time for the Chief Executive’s trips to London and New York by the end of this month or early February.

The approval of the IRRs is crucial since this will spell out the "rules of the game" in a newly-restructured power industry. Prospective investors want the IRRs to be approved before they decide to come in and invest in the country.

According to Energy Secretary Vincent S. Perez, President Arroyo wants the IRRs to be in place so they could proceed with the pre-marketing of the Transco assets in the said countries. "She (President Arroyo) has indicated that to both Senate President Franklin Drilon and House Speaker Jose de Venecia," Perez said.