PSALM in new talks for Transco assets

The Power Sector Assets and Liabilities Management Corp. (PSALM) is reportedly in talks with another investor for the lease of the National Transmission Corp.’s assets.

"We have been looking for other investors. There are some interested investors with certain conditions like financial and political. So far, there is another one which has been added to the list of keen investors for Transco. It is now open season," Transco president Alan T. Ortiz said.

He did not name the firm but stressed this development would not tie them up nor interfere with the negotiated deal arrangements being worked out with Singapore Power, the lone bidder in the two failed attempts to privatize Transco.

Ortiz also confirmed that PSALM has proposed the deferral of Transco’s privatization for the first quarter of 2004.

Over the weekend, PSALM vice president Froilan Tampinco admitted that the schedule for the negotiation on the management contract of the Transco "is getting a little tight."

Up to now, PSALM has not received any formal indication from Singapore Power that it will enter into negotiated deal with Transco. "Talks with Singapore Power are more on an informal basis," he said.

The Office of the Government Corporate Counsel (OGCC) has approved the sale of Transco through a negotiated scheme but it instructed PSALM to draw up specific steps on how to go about the negotiations.

But PSALM is also studying other options in case the negotiations with Singapore Power fail to advance to more definitive stages.

He said they may also seek proposals from their financial advisor, Credit Suisse First Boston (CSFB). "We will consult with CSFB if there will be other options available to us," he added.

If not, Tampinco said Transco will continue to operate the country’s transmission system if it could not forge a deal with Singapore Power. The privatization of Transco will fetch about $2 billion in proceeds for the government.