National Transmission Corp. (Transco) president Asiclo Gonzaga said the Transco board has resolved the issues surrounding the establishment of the first WESM in the country.
"In view of the circumstances that we could not find financing and after exhausting all efforts to seek funds, the Transco board has approved in its recent board meeting to proceed with the final WESM," Gonzaga said.
Contrary to some sector’s claim, Gonzaga explained that although they have decided to skip the interim market for WESM, it does not mean that the system will not be tested.
Alstom, the winning bidder for the interim market management system (IMMS) which was scrapped due to non-concurrence of the World Bank, argued that scrapping the interim market or test period would not be good for the whole industry and might create a California-like power crisis.
"There would still be a test period of three months for the final WESM. We, of course, will have to test the system. But since we have to meet the deadline set by the law, we have no alternative but to proceed to the final market," Gonzaga said.
Under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, the Department of Energy (DOE) and Transco (for the time being) should form a WESM, similar to that of the local stock market, a year after the passage of the law.
Since it is still in its initial stages, the operations of WESM will be handled by Transco and DOE. Transco will also be the one handling the financial requirement of the electricity spot market.
Gonzaga said they hope to finalize the financing for the WESM within this year. Transco is tapping Asian Development Bank (ADB) for a $30-million loan to finance the overall setting up of the WESM.
"We might get the loan any time soon. The last time I heard, it was in the Investment Coordinating Committee (ICC) of the National Economic and Development Authority (NEDA)," he said.
The Transco chief said they could start with the bidding of the project by next month. The bidding process, he said, would take about six to seven months.
If everything goes as planned, after the awarding of the contract, he said the market testing could start by July or August of 2003.
He added that although the awarding of the IMMS contract to Alstom has been voided, the French power giant could still join the bidding.