Concepcion-led group plans to join bidding for Transco assets

A group of local financial investors led by Concepcion Industries Inc. (CII) are planning to join a consortium to participate in the bidding for the National Transmission Corp. (TransCo) assets.

CII chairman and president Raul T. Concepcion told reporters yesterday that some well-known local financial companies, including CII, may join a consortium led by Singapore Power Corp. and British Petroleum.

"It is a small investment. CII may take up about five percent of the consortium. There are a number of local financial firms that may also join the group," Concepcion said.

But Concepcion said they will still have to convince Singapore Power to reconsider its earlier decision to set aside its bid for TransCo.

"We have discussed this (TransCo bidding) before. They are slightly inclined to invest in the Philippines by bidding in TransCo. But due to some issues arising again on the power sector, they are again having second thoughts," he said.

The CII official said "before we can convince them to renew their interest in TransCo, we need to address these concerns."

TransCo is expected to be privatized early part of next year after the transmission firm sets its minimum allowable revenue (MAR) which is still pending with the Energy Regulatory Commission. The MAR will determine the revenue stream of the transmission company in the next five years.

Among the recent concerns of the prospective foreign investors, Concepcion said, is the proposed creation of the super body in the power sector.

"While we tried to lure them to invest in the country, these issues keep on cropping up like the super body and other political issues such as Garci controversy, among others," he said.

Singapore Power was the lone bidder during the two previous biddings conducted by Power Sector Assets and Liabilities Management Corp. (PSALM) for TransCo.

But due to some dilly-dallying on the part of the government, Singapore Power decided to take to the sidelines.

Meanwhile, food and beverage giant San Miguel Corp. (SMC) had reportedly joined forces with Tokyo Electric to vie for the country’s $2-billion transmission highway.

Other groups that have been reportedly eyeing to bid for Transco are: Electricity Generating Authority of Thailand (EGAT) and a Filipino firm; Hydro Quebéc and the Delgados of Islacom; and Metro Pacific Corp. of the First Pacific Co. Ltd. and Australia’s Trans-Grid.

EGAT will be reportedly joined by CITRA of the Salim Group to handle the technical aspect while Northeast Development and Acquisition Corp. will be in charge of the financial side. NEDAC chief operating officer Daniel Aurelio and Jose Salazar were reportedly the ones who coordinated with the PSALM people.

Sources said another group that signified interest for Transco is composed of Japan’s Tokyo Electric Corp. and US-based Trans-Electric (for technical); and San Miguel Corp. and Morgan Stanley (for financial).

The other group, sources said, is reportedly composed of First Pacific Co. Ltd. (financial) and Trans-Grid of Australia (technical).

The last group is reportedly composed of Hydro Quebec for technical aspect and SNC Lavalin will be in charge of the financial requirement of the consortium.

A close relative of Sultan Haji Hassanal Bolkiah of Brunei Darussalam had also reportedly signified interest to join the public bidding for the 50-year concession contract of TransCo.