Napocor’s transmission assets seen to fetch $2.7B

The National Government expects to generate $2.4 to $2.7 billion from the sale of the transmission assets of the National Power Corp. (Napocor), Energy Secretary Vincent S. Perez said.

The newly-enacted Electric Power Industry Reform Act (EPIRA) or Republic Act 9136 provides that Napocor’s transmission and generating assests will be privatized early next year.

The sale will be handled by the newly-created Power Sector Assets and Liabilities Management (PSALM) Corp. headed by Finance Secretary Jose Isidro Camacho.

"The privatization... will be done through concenssionare or through outright sale," according to Transco officer-in-charge Asiselo Gonzaga.

Gonzaga said they are now in the process of incorporating the National Transmission Co. (Transco) which will house Napacor’s transmission assets.

"We have to create the board/officers. We still have to incorporate it (Transco) to make it a legal entity. It’s operating as a transco but it has no personality yet."

At present, transco has four divisions, namely Mindanao, Visayas and Northern and Southern Luzon. Gonzaga said they have received proposals from various international firms such as National Grid Plc. of the United Kingdom and Electricite de France.

Japanese companies have also shown interest in participating in the bidding. These are: Kyushu Corp. and Energy Power Development Corp. of Japan. Gonzaga said these Japanese firms had visited his office some three months ago to confirm their interest to bid for the transco of Napocor.