9 international power firms keen on Transco

The Power Sector Assets and Liabilities Management Corp. (PSALM) disclosed yesterday that at least nine international power firms have expressed interest to participate in the bidding for the National Transmission Corp. (Transco).

"We will give these firms about a week to signify their keen interest," PSALM president Edgardo del Fonso said, adding the foreign power firms are mostly from Europe, Canada and North America.

He said most of these companies have expressed concern over the non-passage of the Transco franchise bill. But he said this issue will not likely have a great impact on the privatization of Transco since PSALM has worked out a scheme that will allow them to privatize the transmission assets without the franchise.

Last week, PSALM and Transco successfully pulled off an international roadshow in Europe and Canada for the sale of Transco assets.

The heads of the two state-run power firms also went to Bangkok, Thailand to kick off the first round of the Asian roadshow presentation for Transco. The results on their European and Asian roadshow will be submitted to Energy Secretary Vincent S. Perez within this week.

Immediately after Holy Week, PSALM and Tarnsco will continue the Asian roadshow to Singapore, Hong Kong, Malaysia and Japan.

Based on the approved bidding process, it will involve 10 steps. These are: publication of invitation to register interest, pre-qualify and bid; submission of expression of interest (EOI) by interested parties of PSALM; issuance of confidential information memorandum to interested parties; issuance of bidding package; due diligence; pre-qualification; qualification; technical proposal and financial bid submission; selection and award of the concession to the winning bidder; and closing of the transaction.

Aside from the nine which have expressed interest during the roadshow, there are at least 14 firms that have submitted letters of intent to participate in the Transco bidding. Of these, nine are foreign and five are local companies.

The government expects to raise about $2 billion from the privatization of the Transco assets. The bidding is expected to be completed by July this year.