Napocor to ‘piggyback’ on government borrowing

The National Government will allow National Power Corp. (Napocor) to "piggyback" on its foreign borrowing to raise $1.5 billion for the power firm’s funding requirement next year.

Finance Secretary Jose Isidro N. Camacho said the government will come in for Napocor for its financial needs should there be a delay in the privatization of its transmission lines.

"We are open (to borrow for Napocor)," Camacho said when asked if the government will again be used by the state-utility in tapping the international financial market next year.

This, however, will hinge on two conditionalities, Camacho said. One is if the legislative measure, which would lay the framework for the eventual privatization of the transmission lines of Napocor, is not passed into law.

It also includes the renewal of the franchise for the transmission lines, which is still pending in Congress.

Second, Camacho said, is if Napocor decides but fails to raise the funds by itself.