RP to see first power privatization in 2002<\/p>\n
MANILA (Reuters): The Philippines will likely see the first
\nprivatization of its power assets late next year should a key
\npower bill pass Congress in a special session next week, Energy
\nSecretary Jose Camacho said on Saturday.<\/p>\n
Camacho added foreign investors are expected to be the main
\nplayers bidding for the state-run National Power Corporation's
\n(Napocor) assets as there are few local firms with enough
\nfinancial capability to rehabilitate and operate these assets.<\/p>\n
\"Even if the bill will be passed...on Monday, we will not be
\nselling the assets two weeks from now,\" Camacho said in a forum
\nwith foreign correspondents.<\/p>\n
\"I personally estimate a period of about 15 to 18 months from
\npassage of the bill before the first set of privatization is
\nlikely to happen.\"<\/p>\n
The Philippines has set a special session of Congress from
\nMonday to Thursday next week to pass a key power bill aimed at
\nprivatizing debt-laden Napocor and restructuring the industry to
\nbring down local power rates, among the highest in the region.<\/p>\n
Officials have said the power reform bill is symbolic of the
\nability of President Gloria Macapagal Arroyo's administration to
\npush for economic reforms.<\/p>\n
Under the bill, Napocor would be split into several companies
\nand sold off. Its power generation facilities will be auctioned
\noff along with the operation of its transmission lines under a
\nconcession agreement.<\/p>\n
A study by Credit Suisse First Boston last year placed the
\ntotal value of Napocor's assets at around $4.5 to 5.0 billion.<\/p>\n
However, Camacho said the valuation might change 18 months
\nfrom now depending on the market condition at the time the
\ngovernment is ready to place its power assets on the auction
\nblock and the state of the local economy.<\/p>\n
Camacho said the government will have to formulate the
\nimplementing rules and regulations of the power bill, draw up a
\nprivatization plan and then come up with bidding guidelines.<\/p>\n
Camacho said one of the reasons why he was \"very optimistic\"
\nof the bill's passage was because the convening congress would be
\nmade up of incumbent legislators and not the incoming.<\/p>\n
\"You would think that you would have natural allies on both
\nsides -- the majority legislators then who are now opposition
\nwere the authors, were the main proponents of the bill and the
\nthen opposition who is now part of the administration,\" he said.<\/p>\n
Arroyo became president after deposed leader Joseph Estrada
\nwas ousted by a popular revolt in January. Arroyo who was then
\nvice-president, headed the opposition coalition in a country
\nwhere presidents and vice-presidents are elected separately.<\/p>\n
The House of Representatives, the less powerful of the two-
\nchamber Congress, has already approved its own version of the key
\npower bill. The Senate is expected to approve its version by
\nWednesday, political sources said.<\/p>\n
A bicameral committee has been meeting in parallel to bridge
\nthe differences between the two chambers and a unified version is
\nexpected to be presented to the plenary session of the House and
\nthe Senate on Thursday for voting, they said.<\/p>\n
Both chambers of congress adjourned on February 8 ahead of the
\nMay 14 congressional and local elections and were due to
\nreconvene on June 4.<\/p>",
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