Privatization plan for Napocor ready by November

The Power Sector Assets and Liabilities Management Corp. (PSALM) expects to finalize the privatization plan for the state-owned National Power Corp. (Napocor) by November this year, Energy Secretary and PSALM board member Vincent S. Perez said.

Perez said based on the timetable prepared by the financial advisors of Napocor, the final privatization plan is targeted to be approved by President Arroyo on Nov. 30.

PSALM was created by the virtue of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA). It is tasked to absorb all the assets and liabilities of Napocor including its independent power producers (IPPs) contracts, and eventually sell these through privatization. The PSALM is chaired by Finance Secretary Jose Isidro Camacho.

He said a series of consultations on the implementing rules and regulations (IRRs) will be conducted starting mid-September this year. The final draft of the privatization plan and the approval of the IRRs, he said, are expected by October.

The approval of the privatization scheme would pave the way for the international roadshow for both local and foreign prospective investors on Dec. 3. According to Perez, they would start distributing the information memorandum at the onstart of January next year.

He said, the sale of the transmission assets of Napocor will take place in the first quarter of 2002 followed by the sale of generation assets in the second and third quarter of next year.

If everything goes according to plan, the energy chief said they would be able to dispose of the transmission and generation assets of Napocor before the end of 2002.