National Grid to offer shares to public

The National Grid Corp. of the Philippines (NGCP) is planning to list its shares in the stock market.

Under its franchise, NGCP should undertake an initial public offering (IPO) of at least 10 to 20 percent of its stake.

“We may consider that in an appropriate time. But it is not considered immediately,” NGCP president and CEO Walter Brown said.

Brown admitted that there are other priorities that NGCP should consider as the company has just taken over the management and operations of the National Transmission Corp. (TransCo).

NGCP was granted a franchise by Congress to operate and maintain TransCo for a 25-year period and it can renew the lease contract for another 25 years.

“We’ve only a board one day – so we’re really concentrating on stabilizing the operations, putting things, upgrading the capability of our people (who are good but have lacked adequate support in terms of equipment and technical back-up),” Brown said.

Aside from the IPO, the franchise of NGCP also allows that company to use the fiber optic system of TransCo.

“We have had initial studies on it. But we have no firm plans this time. It’s an opportunity that we will explore later, but now we’re concentrating on getting on board, improving the efficiency. But yes there is a possibility that we might engage either directly or through a joint venture with another company. But these are options we still have to explore,” he said.

Brown said they will be looking at the fiber optic as one of the business opportunities for NGCP.

“The studies we’ve made have been very preliminary, and I wouldn’t think I could give you a firm answer. It would add, but it would not be a significant part of the total business as my estimate at this time,” he added.

NGCP is a consortium made up of Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corp. of Hongkong Ltd.

The consortium won the concession to operate and manage the system run by Transco in a public bidding conducted by the government, specifically PSALM, in December 2007. The consortium offered $3.95 billion for the concession contract.

Monte Oro Grid Corp. is a wholly-owned subsidiary of Monte Oro Resources & Energy Inc. It was incorporated in the Philippines on August 29, 2006 to invest and hold interest in shares of stocks of companies engaged or proposing to engage in infrastructure projects.

Calaca High Power, meanwhile, formed in 2006, engaged in the business of operating, managing, maintaining and rehabilitating energy systems and services for gas, steam and electricity.

State Grid Corp. of Hongkong Ltd. is a subsidiary of the State Grid Corp. of China , one of the world’s largest power utility companies in the business of power transmission, distribution and sale.