Meralco still keen on Transco assets

Despite being in a tight financial bind, the Manila Electric Co. (Meralco) is not calling off its plan buy some of the subtransmission assets (STAs) of National Transmission Corp. (Transco).

"We are still interested," Meralco president Jesus Francisco said, when asked if they intend to hold off plans to pour in some P4.1 billion in investment to purchase some 21 STAs and 17 sub-stations of Transco within the Meralco franchise area.

Francisco hinted that they will try to buy whatever their budget can afford.

Meralco had planned to invest up to P4.1 billion to buy these assets which are located in Luzon including Metro Manila. However, because of its current financial problem, it is doubtful whether Meralco can afford to spare such an amount.

Initially, the power distribution firm was only interested in the STAs of Transco but the plans changed after the government-run transmission firm came up with a list of substation assets that are also up for sale.

Meralco vice president and head of transmission and distribution Ricardo Buencamino said initially, Meralco allocated some P1.1 billion to buy the STAs of Transco in Cavite, Batangas, Laguna and Bulacan.

But it decided to also purchase some sub-station assets particularly those below 230 kilovolt (kV) of Transco. This increased Meralco’s capital requirement to P4.1 billion.

The P4.1 billion accounts for at least 80 percent of the total P5.5 billion STAs which Transco has lined up for sale.

Buencamino said Meralco is awaiting the final draft of the guidelines on the sale of the STAs of Transco. Meanwhile, the company is proceeding with the assessment of the assets that it intends to buy, he added.

Aside from Cavite, he said Meralco is also eyeing other STAs available for sale like those located in Laguna, Rizal, Quezon, Batangas, Bulacan, Rizal and Metro Manila.

Most of the assets that they will buy in Metro Manila are substations located in Araneta in Cubao and Zapote in Alabang.