"The due diligence by Transco’s potential buyer found the systems operations of Transco superior to a prospective investment that they were looking in North America," Perez said.
With this development, Perez said he is optimistic that the potential buyer will continue to consider Transco as a good investment.
"We’re hopeful that this would lead to the next step of financial due diligence," the energy official said.
Though declining to reveal the identity of the potential investor, Perez said some representatives of this group had just visited the country.
"I can’t say who they are, but they have just been here," he said, noting the fact that the group remains interested on the Transco assets.
There are apprehensions, though, that the privatization of Transco might proceed only after the May elections.
Some energy officials said they may even undergo another international roadshow to present Transco as an investment alternative.
So far, Singapore Power Corp. (SPC) remains the only entity that has signified interest to bid for Transco’s assets valued at about $3 billion.
The government decided to enter into a negotiated deal with SPC after failing to attract other buyers for the assets in the public biddings.
Recently, a Finnish power firm has also signified interest in Transco’s assets.
The Finland-based power company, however, is yet to send its own team to conduct technical evaluation and due diligence on the Transco assets.
If talks with SPC also fail, Transco will be compelled to continue to operate the country’s transmission system. But without the privatization proceeds, Transco may end up securing new loans to finance its capital investment to improve the transmission facilities. At present, Transco is debt-free, giving the buyers of its assets an opportunity to acquire the company on a clean balance sheet.