RP's largest privatization plan ready by next month

RP's largest privatization plan ready by next month by anoname

MANILA (AFP): A US$5 billion plan to privatize the Philippines' debt-ridden state power producer should be ready for signing by President Gloria Arroyo next month, Energy Secretary Vince Perez said Wednesday.

"This is the largest privatization in the entire country to date," he told reporters.

The privatization of National Power Corp. is part of reforms by Arroyo to overhaul the crisis-hit power sector after the passage of the landmark Electricity Industry Reform Act in June.

The law aims to draw more foreign investors into the power sector and spare the country from the prospect of lengthy daily power cuts such as those that crippled the economy almost a decade ago.

The privatization plan lays out the details of asset disposition.

"We are submitting the privatization plan on October 31 for approval by the President and hopefully by December we'll start roadshows in Europe, the United States and Asia," Perez said.

The first batch of sales in the first quarter of 2002 would involve the transmission assets, he said, adding that "so far the feedback has been positive."

Several Asian and European companies had expressed interest, Perez said, who declined to name them citing "market sensitivity."

"By selling the transco (transmission company) first it will give some comfort to those who are buying the generating companies as who is running the transco," he said.

Perez said Singapore and South Korea were currently selling some of their power generating companies but did not expect this to pose any competition to the Philippines.

The Philippines has the highest power charges in Asia after Japan and South Korea and lacks funds to install new power plants to serve rising demand.