"We are currently reviewing the very complicated term sheets that we have received," Energy Secretary Vincent S. Perez said.
According to Perez, the review of the term sheets will take "several weeks." "We need to look into the detailed offers that we have received. We also have to clarify with each of the five interested groups," he said.
Perez said they decided not to disclose yet the identities of the groups to avoid possible collusion.
"We want to keep a healthy competitive environment for the Transco privatization," he said.
Perez, however, noted that the government is "pleasantly surprised" with the result of the submission of expressions of interest for the Transco assets.
"I believe there is renewed confidence on the Philippines especially now that the political climate has improved. Receiving five EOIs is beyond our expectation," he said.
In August 6, the Power Sector Assets and Liabilities Management Corp. (PSALM) had asked interested bidders for the $2 billion Transco assets to submit their indicated offers.
PSALM is the government agency tasked to privatize state-owned generation, transmission and related assets under the Electricity Power Industry Reform Act.
The concession for Transco, on the other hand, will be for a 25-year period renewable for another 25 years subject to performance conditions.
PSALM first bid out the transmission facilities in July 2003. The bidding failed as only one party, Singapore Power Corp., submitted a pre-qualification proposal.
The second bidding held in August 2003 also failed as only the same party submitted an EOI. Government rules on the disposition of its assets allow negotiations after failed bidding.
Aside from Singapore Power, other companies that have apparently expressed interest in Transco assets include AES, Trans-Grid of Australia and a Finnish firm.