"The boards of the Philippine National Oil Co. (PNOC) and EC have given the go signal to choose a financial advisor for the pipeline project," EC president Rufino Bomasang said.
Bomasang said they have already shortlisted three firms and will be ready to name the winning bidder within the next few days.
"We are just resolving some minor legal issues and we will be ready to announce the winning bidder soon," he said.
The bidding, which will be done through an envelope system, will be based on the technical and financial capability of the advisor to handle such account.
"They need to assess the documents that we already have and come up with a viable business plan," Bomasang said.
He added the financial advisor is also expected to assess the extent of EC’s participation in the project.
"They would suggest to us if we should push for a joint venture and how much we should shoulder in terms of investment," he said.
Bomasang said they are looking at the possibility of initially raising some $70 million to $80 million for the project.
"We need to know first how much will be shouldered by our partner if it is going to be a joint venture. But we can initially raise about $70 million to $80 million," he said.
EC has been recently been granted by the Department of Energy (DOE) a permit to construct and operate a natural gas pipeline from Batangas to Manila (Batman I).
Aside from EC, there are at least five foreign firms that have expressed keen interest to construct and operate the proposed $100 million gas pipeline. These are Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc. and Korean Electric Power Co. (Kepco).
The five foreign gas companies have also signified interest to convert the 300-megawatt (MW) Sucat I and 600-MW Limay diesel-fired power plants into natural gas facilities.
Apart from Batman I, the government is also thinking of constructing two more gas pipelines from Bataan to Manila (Batman II) and Batangas to Cavite (Batcave).
Some of these companies have reportedly talked to EC for the possibility of conducting feasibility studies with the state-owned oil firm.
Over the last few months, these firms have been exploring possibilities of forging tie-ups with local firms such as PNOC-EC.
Aside from these five foreign firms, several other firms have already signified interest to take part in the construction of the gas pipeline. These are: First Gas Power Corp., Mashhor of Brunei, Chevron Texaco and Shell Philippines Exploration B.V.