"TransCo is truly proud of this milestone. Reaching the P2-billion mark is a significant development in our aggressive efforts to divest our sub-transmission assets to qualified electric cooperatives as mandated by EPIRA (Electric Power Industry Reform Act)," TransCo president Arthur N. Aguilar said.
The P2-billion sales mark was achieved with the signing yesterday of one more sale contract with a technically and financially qualified distribution utility.
TransCo and Ilocos Sur Electric Cooperative Inc. (ISECO) signed a lease purchase agreement which will eventually transfer ownership of P48.7 million worth of sub-transmission assets (STAs) in Ilocos Sur to the electric cooperative.
The contract involves the sale of 420 structures including the San Esteban-Candon, New Bantay-Sto. Domingo, and the San Esteban-Narvacan junction and take-off lines spanning a total of 42 kilometers.
To date, all electric cooperatives in the Northern Luzon have already entered into divestment contracts with TransCo.
Under the EPIRA, TransCo should divest its STAs. The transmission firm started its STA divestment program in 2004.
The deal with ISECO is TransCo’s fourth sale contract with a distribution utility in the Ilocos Region after Ilocos Norte Electric Cooperative (INEC), La Union Electric Cooperative (LUELCO) and Abra Electric Cooperative (ABRECO).