PSALM embarks on Asian roadshow this month

The Power Sector Assets and Liabilities Management Corp. (PSALM) will start its international roadshow presentation in Asia this month.

"PSALM will conduct a roadshow very soon or within the month to sell and explain fully the privatization of transmission assets to the potential investors," a Transco official, who requested anonymity, said yesterday.

According to the Transco official, the roadshow will start in Asia as most of the investors that expressed interest in Transco are Asian-based firms.

Of the 10 investors that have so far indicated an interest in joining the bidding for Transco, six are Asian firms, while three are local equity firms and one is a non-Asian firm.

The official, however, declined to identify the specific countries in Asia that they are considering tapping first.

When Transco was initially intended to be privatized last year, it said it wanted to conduct a roadshow in Hong Kong, Malaysia and Singapore.

Last week, PSALM extended the deadline for submission of proposals to bid for the transmission assets of Transco to March 17 from the original deadline of Feb. 21 to accomodate those which have expressed interest in joining the bidding but had requested for more clarification regarding Transco's bidding structure.

The timetable for the privatization of Tranco will cover a period of about six months which started last January. This includes the period required for due diligence.

PSALM, under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, will absorb all the assets and liabilities of Napocor and will handle the power firm's privatization. EPIRA also mandated the creation of the Transco to handle the transmission assets of Napocor.

Last year, some of Asian power firms signified their interest to join the Transco bidding. These were: Konsortium Logistik Berhad (KLB), the biggest power company in Malaysia, and some Japanese firms like Kansai Electric Corp., Kyushu Electric Corp., Electric Power Development of Japan and Tokyo Electric.

Other non-Asian firms that also showed interest included Spain-based Red Electrica, Intergen, Mid American Energy Holdings Inc., Edison Mission Energy, Hydro Quebec, and National Grid.