The draft IRR is expected to be approved by President Arroyo soon, paving the way for the restructuring of the power industry and the privatization of the National Power Corp. (Napocor).
Many international and local investors have signified interest to participate in the privatization of the state-owned Napocor and have been merely waiting for the irr to be finalized to know the "rules of the game" before making any definite moves.
"With the IRR approved, we will now prepare for the processes that would be at hand," Napocor officer-in-charge Roland S. Quilala said, adding that Napocor will finalize its own guidelines for the separation and re-hiring of affected employees within 90 days. A steering committee will be formed this week to oversee the process of reorganization in Napocor.
"I am very optimistic that the next steps will proceed smoothly because the employees are ready for it. It has been a long process and the employees have been given the proper preparation for possible eventualities," Quilala said.
The IRR provides that employees who will be released will be given a separation package equivalent to one-and-a-half month salary per year of service.
Affected employees will also be given preference in the hiring of the manpower requirements of the privatized companies. The Department of Labor and Employment will also provide skills training program, job counselling and re-training to the displaced workers.
A Napocor official said that of the 3,500 employees of the National Transmission Co. (Transco), the new owner will likely be able to absorb only 2,000.
Energy Secretary Vincent S. Perez said the final approval of the IRR will send a strong signal to investors that the Arroyo administration is serious in institutionalizing economic reforms, particularly in the electricity industry.
Perez said this is in time for the government’s second roadshow which is scheduled to start in the next few days.
With the approval of the IRR, Perez said he is confident that interest will grow among both foreign and local investors.
"The President is very committed that we implement the necessary reforms in our power and that we stay on track with the privatization of Napocor. The JCPC gave us a provisional approval of the IRR when the President led a delegation for a working visit abroad early last month," Perez said.
The energy secretary said he is looking forward to a more successful roadshow. "After barely a month they approved it with finality. We are glad because we have something final to present to the investors as we kick off a second roadshow. We also believe we can meet all the target we have set, first by privatizing the Transco by June or July this year," he added.
The JCPC, composed of 14 members representing both chambers of Congress headed by Sen. Renato L. Cayetano, chairman of the Senate committee on energy, and Rep. Alipio Cirilo Badelles, chairman of the House committee on energy, approved the IRR last Monday.