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.