Transco seeks P30-B budget for 2004

The National Transmission Corp. (Transco) will need a P30-billion budget for 2004, its president Alan T. Ortiz said.

Based on the Transmission Development Plan (TDP) for the 2002 to 2011 period, the country will need some P96.68 billion in capital for the improvement and modernization of the national power transmission system during the 10-year period.

Of this amount, some P30.85 billion or 31.9 percent will be needed for projects up for implementation, P47.7 billion or 49.3 percent for future or indicative projects and P18.13 billion or 18.8 percent for ongoing projects.

Transco is the spin-off company created by the Electric Power Industry Reform Act (EPIRA) to manage the country’s transmission network.

It started operating independently from the National Power Corp. (Napocor) in March this year. In the first quarter, it posted a net income of P4.03 billion.

Based on the revised TDP for 2004 to 2013, Transco will carry out projects such as the critical Cebu-Negros-Panay inteconnection uprating project (CNP-IUP), composed of Negros-Panay and the Negros-Cebu interconnection uprating projects which both aim to improve the reliability, adequacy, security, and stability of the grid.

Ortiz said the approval of the TDP will fasttrack the completion of the electricity highway nationwide.

"Transco remains committed to complete the projects in order to meet the fast-growing demand for power especially in the Visayas," Ortiz said.

The Transco official said the firm is sticking to its scheduled timetable for the implementation of crucial infrastructure projects as indicated in the TDP.

Aside from CNP-IUP, Transco also intends to push through with its Cebu-Mactan, Leyte-Cebu, Leyte-Mindanao, Leyte-Bohol interconnection projects and the Batangas transmission reinforcement project.

Despite the number of projects to be carried out next year, Ortiz said Transco wants to stay "debt-free" and does not intend to borrow funds for its capital expenditure for the next two to three years, at the least

"There is no immediate plan to borrow yet. We still have internally-generated funds that will last up to 12 to 24 months," he said.

He said the ongoing projects of Transco have already secured the necessary financing for the next three years.

But Ortiz pointed out that after this period, Transco will not be allowed to enter into new contracts. "Unless a new concessionaire comes in to help out in the expansion of our transmission facilities," he said.

Though Transco has a steady cash flow, he said securing funds for new projects will be a main concern in the near future. "We can survive. But with great difficulty," he stressed.

Under the law, Transco will have to finance and implement all projects and programs which have already been started.

The new expansion and modernization projects will have to be funded and implemented by the winning concessionaire.

The TDP will provide a blueprint to be followed by the concessionaire. It will also define the expansion projects of Transco over a 10-year period.