Finnish power firm eyes Transco assets

A big Finnish power firm has become the latest entity to express keen interest in bidding for the assets of the National Transmission Corp. (Transco), a ranking Transco official said.

"I have talked with another group. A group from Finland came over this morning expressing interest in Transco,"the official said.

The official said this marks the first time the unnamed Finnish firm will participate in a power-related business in the country.

According to the Transco official, the firm sent its local representative, and another group will be coming over next month to conduct technical due diligence.

Transco is about to start a negotiated deal with Singapore Power Corp. (SPC), the sole bidder during the last two biddings Transco conducted for its transmission assets.

But the Transco official said most of the interested investors are wary about the outcome of the election. "They are still in a wait-and-see attitude. They will somewhat use the results of the election as the barometer for their investment in the country," he said.

However, he noted that Transco remains an attractive investment. It recorded a net income of P16 billion in the first nine months of 2003 and is still debt-free.

As this developed, Transco president Alan T. Ortiz said they expect to raise some P6 to P8 billion proceeds from the sale of its sub-transmission assets (STAs). Of this amount, they expect to raise about P200 million to P300 million this year.

Aside from San Fernando Electric Light and Power Co. which signed a conditional deed of sale for P12 million worth of STAs yesterday, Transco will start negotiations with at least five to six more distribution utilities and electric cooperatives. These DUs and ECs include: Tarlac Electric, Cabanatuan Electric, Angeles Electric and Pampanga Electric Cooperative I, II and III.

Ortiz said they expect to dispose their STAs within 27 months.