Perez welcomes ADB offer for power sector

Energy Secretary Vincent S. Perez has lauded the Asian Development Bank’s (ADB) for indicating its willingness to provide new financial packages for the country’s power sector.

Perez said this was the result of discussions between the Department of Energy and the multilateral financial institution on possible assistance to further develop the Philippine power sector.

"ADB’s move to provide financing assistance is much welcome to help us avert any shortage of power supply in the near future," Perez said.

Last week, ADB announced that it is in close discussions with the government on the form of assistance it could offer. Initially, the multilateral bank was quoted as saying it is eyeing three options: emergency investment, guarantee component or comprehensive assistance.

"We are hopeful that ADB would be able to come up soon with a new financing package given that we’ve been making headway in the privatization of the National Power Corp.’s generating and transmission assets," Perez said.

To date, the Power Sector Assets Liabilities and Management Corp. (PSALM), the entity tasked to handle Napocor’s privatization, has successfully bid out three generating assets, all hydroelectric power plants — the 3.5 megawatt (MW) Talomo, the 1.6-MW Agusan and the 1.8-MW Barit facilities.

While working on an "ambitious target," Perez said PSALM is hopeful that it will be able to dispose of 70 percent of Napocor’s generating plants in Luzon and Visayas by end-2005.

The energy chief said PSALM will commence soon with the negotiations on the sale of the National Transmission Corp. (Transco) following the submission of expressions of interest from five firms.

"ADB has been a major partner in the reforms we’ve been instituting for our electricity industry," he said.

Perez said ADB’s commitment to support the Philippine power sector will send good signal to investors.

"We believe its continued confidence in us would bring fresh and revived interest from investors. In turn, this provides guarantee that we will be able to generate maximum returns for our privatization efforts," he said.