Terna/Citadel, Metro Pacific may still join TransCo rebidding

Italian Power firm of Terna SPA and its local partner Citadel Holdings Inc. may still reconsider to participate in the rebidding of the 25-year concession contract of National Transmission Corp. (TransCo), a group official said.

The Italian-led group was the sole bidder during the Feb. 5 bidding for the right to run the country’s power transmission highway.

Citadel spokesman Rogelio Singson said the group will meet up with the newly-appointed Power Sector Assets and Liabilities Management Corp. (PSALM) president Jose Ibazeta to discuss their options.

Ibazeta replaced Nieves Osorio whose resignation became effective last March 1.

As this developed, Metro Pacific Investment Corp. chairman Manuel V. Pangilinan said they are also still interested to bid for TransCo.

"We have been interested before and we continue to be interested," Pangilinan said.

It would be recalled that Pangilinan, whose group also controls Philippine Long Distance Co. and Smart Communications, was reportedly eyeing to invest in TransCo as he sees bright prospects on the transmission firm’s fiber optic facilities.

But Pangilinan admitted that his group is still scouting for foreign technical partners to support its bid for TransCo. "At this point nothing is certain," Panglinan said. We are looking for a technical partner suitable to the government".

For his part, Singson said his group has yet to finalize plans for TransCo.

"They have not made a formal announcement. The Italians have set a meeting with Mr. Ibazeta to discuss the plans of PSALM," he said.

Terna SPA earlier said it may "walk away" with its bid for TransCo should government opt for a rebidding of TransCo’s assets.

Since the Terna/Citadel group is the sole bidder, it should have been allowed to negotiate with PSALM but in the end, the government still called for a re-bid.

PSALM chairman and Finance Secretary Margarito Teves earlier said they hope the Italian group would still join the rebidding.

Teves also revealed that the other prequalified consortium, State Grid of China and its local partner Monte Oro Grid Resources Corp. may no longer participate in the rebidding.

But Teves said a new group has signified keen interest to participate in the TransCo bidding.

Teves said the problems hounding the chairman of State Grid may have an impact on their plans to join the bidding.

Liu Zhenya, State Grid’s chairman, is currently embroiled in a controversy over the privatization of the Luneng Group, one of China’s largest conglomerates.