Transco president Alan Ortiz said the company’s board has cleared the negotiations for the sale of the assets, with a total value of about P5.5 billion.
Ortiz said the Transco board recognized the need to allow the private sector to maintain, operate and expand these STAs. He said the sale of the STAs will also pave the way for improved electricity supply to all parts of the country.
The Energy Regulatory Commission (ERC) has approved last October the guidelines that will govern the disposal of the STAs.
Based on the guidelines, the transmission voltage level shall be determined on an asset – specific basis following the appropriate application of the technical and functional criteria set in the Electric Power Industry Reform Act (EPIRA).
The assets include directly-connected generators, directly-connected end-users and directly-connected load-end substation.
The technical capability criteria for qualification include a year of experience in operation and maintenance of a line voltage level equipment of STAs.
The participating distribution utilities (DUs) should also have two years experience in operating and maintenance of sub-station facilities. They should also post a weighted average of not more than 80 percent of reliability performance for the most current year (interruption frequency rate 50 percent and cumulative interruption of 50 percent).
The financial capability criteria for qualification, on the other hand, include the following ratio based on their most current audited financial statements: a current ratio of 0.80:1 or a quick ratio of 0.70:1; a debt ratio of not more than 60 percent; average collection period of not more than 60 percent and a positive net profit margin and return on assets.
The Manila Electric Co. (Meralco) and the Philippine Electric Power Plant Owners Association (PEPOA) are among those that have expressed keen interest in buying STAs in their respective franchise areas.
Meralco said it would set aside some P4.1 billion for the purchase of some 21 sub-transmission lines and 17 sub-stations within its franchise areas in Luzon including Metro Manila.