4 Asian firms eye Transco assets

Four Asian companies have expressed interest in bidding for the Philippines state-owned electricity transmission system, the head of the privatizing agency said Wednesday.

"As of today we have four interested groups, all Asian," said Power Sector Assets and Liabilities Management Corp. (PSALM) president Edgardo del Fonso, who would not identify the potential bidders.

PSALM is holding the state’s power assets ahead of their privatization. The power transmission assets are to be sold through the auction of the National Transmission Co. (Transco) concession.

Del Fonso told reporters that the due diligence and pre-qualification period for the Transco bids will likely last from March to early July, after which three qualified bidders will be announced. The concession will be awarded by mid-July.

Energy Secretary Vincent Perez said at the same forum that he expects more companies to express an interest during the bid solicitation period, which lasts until Febuary 21.

The government will separately sell the power generation assets of loss-making utility National Power Corp. (Napocor) to the private sector.

The privatization of Napocor is provided for under the Electric Power Industry Reform Act which provides for the liberalization of the Philippine power industry.

After the transmission assets, the generation asssets of Napocor will also be privatized.