PSALM goes on roadshow

Amid uncertainties brought about by the US-Iraq war, the Power Sector Assets and Liabilities Management Corp. (PSALM) will launch today an international roadshow in the European Community, Asia and Canada to drum up interest for the privatization of about $2.2 billion worth of transmission assets of the National Transmission Corp. (Transco).

A PSALM official said the roadshow, to be conducted in key cities in the EC, Asia and Canada, will last until April 10.

"The roadshow has been scheduled and we need to push through with it even with the uncertainties resulting from the hostilities in Iraq," said the same official.

Earlier this month, PSALM extended the deadline for the submission of proposals to bid for the transmission assets of Transco to March 17 from the original deadline of Feb. 21 to accommodate parties which had expressed interest in joining the bidding but requested for more clarification regarding Transco’s bidding structure.

The timetable for the privatization of Transco is six months and this includes the period required for due diligence.

PSALM, under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, will absorb all assets and liabilities of Napocor and will handle the power firm’s privatization. The law also mandated the creation of the Transco to handle the transmission assets of Napocor.

The Transco privatization will be carried out in two phases. Phase I will have PSALM awarding a concession to operate, maintain, rehabilitate, expand and finance the nationwide high voltage transmission grid in favor of the concessionaire.

Phase II will start when Congress approves a franchise in favor of the concessionaire. At that point, the concessionaire will take over as the grid operator and run the entire transmission system.