Metro Pacific shows interest in Transco assets

Metro Pacific Corp. (MPC) eyes the acquisition of some of the National Transmission Corp.’s (Transco) assets.

MPC chairman Manuel V. Pangilinan said over the weekend the company remains on the lookout for power projects that will be privatized.

"MPC has always been interested in power infrastructures. We are looking look at it (Transco privatization)," Pangilinan said.

Previously, MPC, a unit of Hong Kong’s First Pacific Co. Ltd., announced it was contemplating its participation in the bidding of Transco assets and it teamed up then with Trans-Grid of Australia.

It also confirmed reports that it was holding exploratory talks for possible investments in the local power sector.

The Power Sector Assets and Liabilities and Management Corp. (PSALM) which oversees the disposal of the country’s power generation and transmission assets is scheduled to auction Transco by end December or in the first quarter of 2006.

Transco’s privatization was originally set for October this year but PSALM president Nieves Osorio said the determination of the Energy Regulatory Commission on Transco’s transmission revenue cap is crucial to investors interest.

The revenue cap would assure electricity consumers of Transco that fair electricity rates will be charged even after the privatization of Transco.

ERC announced that the revenue cap or MAR will be set in 2006 after the holding of public consultation in the first quarter of next year. Several parties have expressed interest in bidding for Transco.

These are the Electricity Generating Authority of Thailand (Egat) and CITRA of Indonesia, Japan’s Tokyo Electric Corp., US-based Trans-Electric and San Miguel Corp. with Morgan Stanley and the group composed of Hydro Quebec, which is connected with the Delgados, formerly of IslaCommunications, and SNC Lavalin.

Transco’s sale is estimated to generate $2 billion.