Philippines to get US$2b from Napocor sale: Report
Philippines to get US$2b from Napocor sale: Report
Dow Jones, Singapore
The Philippine government expects to generate US$2 billion
from the sale of state-run National Power Corp., or Napocor,
transmission operations, according to Tuesday's Business World.
Asisclo T. Gonzaga, president of National Transmission Corp.,
or Transco, said the figure was based on initial estimates and
could be even greater, depending on how the sale is conducted.
Transco, which comprises Napocor's transmission operations,
was formed as part of the government's privatization strategy.
Gonzaga said he expected the sale of Transco's subtransmission
assets to distribution companies to generate an additional 12
billion pesos (US$1= 51.555 peso).
Napocor's subtransmission assets are the low-voltage
transmission facilities linking the national power grid to the
distribution operations.
Transco is currently in negotiations with distribution firms
over the sale of subtransmission assets, according to Business
World. The subtransmission asset sale will be conducted outside
of the government's main privatization strategy. Transco must
complete the transfer of the subtransmission assets in two years
under the electric power laws.
As part of the government's privatization strategy, Transco
will be sold ahead of Napocor's power generation operations,
either through a concession agreement - which will have a
contract period of 25 years - or by outright sale.
The Philippine government is expected to complete the draft of
the rules and regulations for Napocor's privatization later this
month and present it to President Gloria Macapagal Arroyo by the
end of this year.
Once approved by the president, the government plans to
complete the sale of Transco to a single global player by mid-
2002.
Edgardo del Fonso, president of the Power Sector Assets and
Liabilities Management Corp., or Psalm, said Friday that around
10 European and Asian groups have expressed an interest in
acquiring Transco. Psalm is the agency tasked to handle Napocor's
privatization.
National Grid Group PLC (NGG), a U.K.-based power transmission
company, Electricite de France (F.EDF), Kyushu Corp. and Energy
Power Development Corp. of Japan have shown an interest in
purchasing Transco.