Junnie uyon ER iphon didto na sa Manila

The government has assured the country’s foreign investors of continuing efforts to privatize the assets of the state-owned National Power Corp. (Napocor).

In a briefing hosted by the Joint Foreign Chambers of Commerce (JFCC), Energy Secretary Raphael P.M. Lotilla said despite the series of failed biddings for Napocor’s power generation plants in 2006, the government remains fully committed to privatizing the power sector.

Based on the timetable of the government, it expects to sell at least 50 percent of Napocor’s assets in Luzon and Visayas by end-2007.  It is hoping to complete the privatization process by 2009.

According to Lotilla, the government is optimistic it would sustain the interest of the private sector in the generation assets.

“Greatly encouraged by the expressions of interest from different groups, the energy sector is confident that it can soon swiftly turn over the responsibility to a private group for better delivery of service,” he said.

Lotilla also took note of the turnover of Napocor assets to the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Transmission Corp. (TransCo) with the signing of the World Bank’s universal consent.

Lotilla also told the foreign groups that the government is firm on securing the Japan Bank for International Cooperation (JBIC)’s agreement within the year to efficiently facilitate the process of privatization.

The energy chief said they are also working out ways to keep an order on Napocor’s financial condition. “Managing the debts and liabilities of Napocor and sustaining its improved fiscal performance remains a priority,” he said.

He said Napocor is likely to keep posting earnings. “With its fiscal position now in the black, Napocor is determined to seek ways to sustain and improve it.”

Lotilla said Napocor will also continue to implement ways to maintain a healthy fiscal stance.

“Strategies such as optimizing the use of power plants that utilize cheaper fuel such as geothermal, natural gas and hydropower, and implementing other cost-cutting measures such as the effective use of corporate resources, among others, were the initial steps that they are considering now,” he said.

Organized by American Chamber of Commerce, the economic briefing helps keep chamber members on track with goings-on in the Philippine government.

These kind of activities also enable the country’s energy sector a chance to explain its plans to the group.