Perez said the consortium is led by Tenaga Nasional Berhad (TNB), the largest electricity utility firm in Malaysia, with assets of more than $14.2 billion and serves over five million customers throughout the Peninsular Malaysia and Sabah. Two other power firms, YTL Power International Berhad and the Powertech, expressed interest in joining forces with TNB and bid for Napocor’s assets.
YTL Power is involved in the operation of two natural gas-fired electricity generating stations in Paka, Terengganu and Pasir Gudang, Johor in Malaysia.
The Paka power station consists of two combined cycle blocks with a total installed capacity of 808 MW while the Psir Gudang power station consists of one combined cycle block with a total installed capacity of 404 MW.
"They informed me of their interest during a private meeting after my presentation on the new developments and opportunities in the Philippine energy sector during the recent State Visit of President Arroyo in Kuala Lumpur," the energy chief said.
He said the Malaysian-based power utility firm’s core activities are generation, transmission and distribution of electricity.
TNB is a wholly-owned subsidiary of TNB General which has the largest generation capacity over 7,100 MW which accounts for over 61 percent of the total power generation of Peninsular Malaysia.
"They are awaiting to see first the privatization plan as well as the bidding rules that will set the terms of sale of Napocor’s generation assets," Perez said.
As part of its privatization program, Napocor’s generation business will be sold to the private sector in the second quarter of 2002. The sale of the transmission assets of Napocor is scheduled for the first quarter of next year.
The privatization will be handled by the newly-formed Power Sector Assets and Liabilities Management Corp. (PSALM), an entity created under Republic Act 9136 to handle the sale of the transmission and generation assets of the state-run power firm.
The government expects to generate more than $7 billion from the sale of Napocor assets, of which $2.4 to 2.7 billion will be raised from the sale of transmission assets and about $4.5 billion from generation assets.
PSALM has selected Credit Suisse First Boston and N.M. Rothschild and Sons as financial advisors for the privatization of Napocor.
The two international financial institutions will advise and assist the Philippine government on the privatization plan on both the transmission and generation assets of Napocor as well as other disposable assets and existing independent power producers (IPP) contracts.