The Securities and Exchange Commission (SEC) has approved Calaca High Power Corp.’s plan to increase its authorized capital stock to P3 billion from P1 billion.
Calaca is a member of the consortium that won the right to run the national power transmission system under the National Transmission Corp. (TransCo).
Out of the firm’s new capitalization, P2.25 billion has been subscribed while P1.64 billion has been paid for in cash.
Formed in December 2006, Calaca High is headed by stockbroker Robert Coyiuto Jr. and Pedro Goza. It operates, maintains and rehabilitates energy systems and services for gas, steam and electricity.
Calaca High is part of the National Grid Corp. of the Philippines (NGCP) which also comprises local firm Monte Oro Grid of businessman Walter Brown and State Grid Corp. of China.
NGCP beat the $3.905-billion offer from Southeast Asia’s largest food and beverage conglomerate San Miguel Corp. and partners Amsterdam-based TPG Aurora BV and Malaysian utility Tenaga Nasional with its winning bid of $3.95 billion for the TransCo concession.
Monte Oro Grid is a wholly-owned unit of Monte Oro Resources & Energy Inc. that invests and holds interest in shares of stock of companies engaged or proposing to engage in infrastructure projects.
State Grid Corp. of China, on the other hand, was organized from the assets of the State Power Corp. of China which has been authorized by China’s State Council to operate power transmission, transformation, distribution and other assets of power grids.
A legislative measure granting a franchise to NGCP was approved on second reading at the House of Representatives. NGCP has an authorized capital stock of P2 billion, P500 million of which was paid-up.
House Speaker Prospero C. Nograles, one of the principal authors of the bill, said the measure was prioritized given the need to rehabilitate the country’s aging transmission system.
The rehabilitation, he said, would help stabilize power rates as he noted the current exorbitant costs of power.
NGCP has until December this year to secure a Congressional franchise to operate the power transmission system.
Should it fail to obtain a franchise, the bidding would be declared a failure and government would reimburse the group’s expenses of as much as $5 million.
The consortium earlier said it might tap the international debt market to fund its bid.
Under the terms set by the government, NGCP will pay 25 percent of the bid price upon the approval of the franchise, with the balance to be amortized over 20 years at an interest rate of 12 percent a year.