Transco transition period starts January 1

CEBU - The transition period for the National Transmission Corporation (Transco) begins in January 1, 2009 after the consortium of the National Grid Corporation of the Philippines, the winning concessionaire of Transco, secured the franchise approval from Congress last December 6.

President Gloria Arroyo signed into law Republic Act 9511 allowing the takeover of the management of Transco to NGCP. Before the final takeover, under the law, Transco will have to undergo a five-month transition period or 165 days of adjustment.

Transco spokesman Benjamin Ypil said that the whole period of transition for the employees of Transco in the Visayas will be a floating period because they are not sure of their real status with the company.

Ypil said they are not sure what will happen within the 165 days aside from normal working days with normal pay. He said evaluation and assessment might be done.

While NGCP has not promised them absolute security of tenure once it finally takes over the company Ypil said RA 9511 provides for preference of hiring if positions are not abolished with the new administration.

NGCP has not announced the manpower it will need with its plan to expand the company. There are around 2,000 employees of Transco in the Visayas who are yet to be decided if they will remain in the company or not.

Last Dec. 12, 2007, the Power Sector Assets and Liabilities Management Corp. declared the consortium of the Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corp. of China as the winning bidder for the 25-year concession of Transco with an offer of US$ 3.950 billion.

Ypil said that assets will remain to the government while NGCP will be in charge of the maintenance, upgrades and expansion.

This is an advantage to the government, Ypil said, because the government will have no more burden to find capital for the maintenance and expansion of Transco.

Monte Oro now has to pay the government the 25 percent of the bid price which is about $1 billion while the rest shall be paid later on.  — Jessica Ann R. Pareja/BRP (THE FREEMAN)