But Siemens Power Generation wants to know "the rules of the game," according to its leading executive in the Asia Pacific region.
Friederich Nadler, managing director for the Asia Pacific region of Siemens Power Generation, said they are interested in making major investments in the generation, transmission and distribution sectors, including making a bid for the generation companies (gencos) of the National Power Corp. (Napocor).
The Germany-based company is also interested to know how the proposed pool or spot electricity market would work.
"But we must first have a clear picture of the deregulation environment before investors would seriously enter the Philippine energy market," Nadler told newsmen during the night session of the 13th Conference on the Electric Power Supply Industry(CEPSI).
The Siemens managing director was referring to the Electricity Reform bill which is now in the Senate after months of grueling deliberations in the House of Representatives. Many are saying that if it will remain with the Upper House by the end of the year, the energy restructuring legislation will not be passed into law as the election period starts in December this year.
"The energy industry and foreign investors are starting to have a certain degree of pessimism towards the passage of the bill, which we all view as the source of the rules of the investment environment," Nadler added.
Most prospective foreign investors in the country’s energy sector have taken a wait-and-see attitude until the bill is passed. Without the "rules of the game," the investors are prepared to look for business opportunities in other Asian countries like Thailand, Vietnam, Malaysia, Cambodia and the People’s Republic of China.
Investors as well as foreign financial institutions also strongly encourage the privatization of Napocor to free its operations from the burden of repaying huge debts and the contractual obligations which has further drained its earnings and operational capabilities.
Siemens in the Philippines has businesses amounting to approximately P150.9 billion while its direct investments reached P35 million in a five-year-period. It is not only involved in the energy sector but also in telecommunications, health care, industry, transportation, information technology and lighting.
Among the major activities it has undertaken in the energy sector is the 1,000-megawatts (MW) Sta. Rita and the 500-MW San Lorenzo combined cycle power plants, both in Batangas. It is likewise involved in millions of pesos of businesses with Napocor.
Total investments in the energy sector is estimated to reach $32.5 billion (approximately P1.3 trillion) in the next nine years. The power sector alone will invest at least P387.1 billion.