Power firms from 4 countries eye Napocor assets

Big power firms from Hong Kong, Thailand, Singapore and New Zealand have expressed keen interest in the assets of the National Power Corp. (Napocor), Power Sector Assets and Liabilities Management Corp. (PSALM) president Edgardo Del Fonso said.

In an interview yesterday, Del Fonso said since the passage of the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act (EIRA) or Republic Act No. 9136, "we have seen more interests from potential investors. Interest for transmission and generation assets of Napocor has perked up."

He said he had met with at least five more interested parties from Hong Kong, Singapore, Thailand, Japan and Malaysia.

"A group from Thailand is looking at some generating assets of Napocor while the HK group is eyeing both gencos and transmission assets," he said. Del Fonso declined to give the identities of potential buyers from Thailand, Hong Kong, and Singapore.

National Transmission Co. (Transco) president Asisclo Gonzaga said Transgrid of New Zealand was in the country three weeks ago to signify interest to bid for Transco.

He said some companies from Japan have also expressed interest in the generation assets of the state-owned power firm.

"I had meetings with officials of some Japanese power firms last January. They are still interested," he said.

Late last month, the Konsortium Logistik Berhad (KLB), the biggest power company in Malaysia, indicated an interest in bidding for the transmission and generation assets of Napocor.

A close relative of President Mahathir, Mirzan Mahathir, executive chairman and president of KLB, had met officials of PSALM and Department of Energy (DOE) to discuss their intention to participate in the Napocor privatization.

Tenaga Nasional Berhad vice president for corporate affairs Datuk Sidek Bin Ahmad also expressed interest to look into the generating and transmission assets of Napocor.

Spain-based Red Electrica is sending its team to the Philippines by end of this month to firm up its commitment to bid for Transco.

Other groups that have expressed interest in the transmission and generation assets of Napocor are: Intergen, Mid American Energy Holdings Inc., Edison Mission Energy, Hydro Quebec, and National Grid.

The five Japanese firms that have indicated plans to participate in the bidding are Kansai Electric Corp., Kyushu Electric Corp., Electric Power Development of Japan and Tokyo Electric.