PSALM assures TransCo bidders of transparency

The Power Sector Assets and Liabilities Management Corp. (PSALM) assured yesterday the three prospective bidders for the 25-year concession of the National Transmission Corp. (TransCo) that the Dec. 20 auction will be conducted with utmost transparency and integrity.

PSALM president Nieves Osorio gave this assurance during the pre-bid conference held Monday at the TransCo Training Center in Diliman, Quezon City in response to queries from the investor groups if the evaluation of documents submitted during the Dec. 20 bidding would be completed on the day itself.

Osorio also assured that the signed versions of the direct agreement and its schedules will be submitted by the bidders on the final bidding day as these are flashed on wide-screens to ensure that all interested parties can see for themselves what the evaluators are examining.

The evaluators, she said, will go through all the pages to ensure accuracy in page checking.

According to Osorio, PSALM had asked the bidders to put in writing all other questions and requests in compliance with standard operating procedures. PSALM, in turn, will reply in writing, copies of which will be distributed to all bidders to ensure equal treatment.

The conference was attended by representatives of the three prequalified investor groups namely: the consortium of Triratna Holdings Corp., Tenaga Nasional Berhad and Newbridge Asia IV, L.P.; the consortium of Citadel Holdings Inc. and Terna SPA; and the consortium of Monte Oro Grid Resources Corp. and State Grid Corp. of China.

Representatives of the government’s major international creditors – the World Bank, Japan Bank for International Cooperation and the Asian Development Bank – were also present during the conference.

"The conference is the proper venue to discuss with the prospective bidders the bidding procedures before the transaction documents are finalized prior to the bid submission deadline," Osorio said. "This is also to ensure that prequalified bidders are notified of the amendments and revisions in the bid documents."

She said modifications resulting from the discussions will be contained in a subsequent supplemental bid bulletin that will be issued immediately to the bidders.

"More significantly, through this activity we will be able to deepen dialogues with the investor groups on any unforeseen issues to improve the terms and conditions of the bidding procedures," Osorio said.