Power sector investors await election results

Potential buyers of the generating companies (gencos) and transmission assets owned by the state-run National Power Corp. (Napocor) are in wait-and-see mode for the results of last Monday’s presidential elections, President Arroyo said yesterday.

President Arroyo revealed this to Palace reporters in a hastily organized "thanksgiving luncheon" she hosted for them at Malacañang a day after the elections.

The President cited the "privatization" of these state assets, mostly from the Napocor, is the major source of non-tax measures that the government is eyeing to beef up the country’s revenue base.

The Chief Executive said Department of Energy (DOE) Secretary Vicente Perez reported to her that they have received a lot of bid tenders already for the gencos as well as offers to bid for the National Transmission Corp. (Transco).

"Vince has done all the bidding documents for the gencos and all are ready for sale and submit their bids," the President cited.

"In the case of Transco, the buyers are waiting whether I will win or lose because they will be putting a lot of money and they want to make sure that their investment give them a reasonable rate of return under a competitive pricing (of electricity) which I promised during the campaign to make power rates the lowest in the region," the President pointed out.

President Arroyo, an economist by profession, received wide support among the local and foreign business and investment community in the just-concluded presidential polls.

The President noted that the government could not afford to let these gencos to stay any longer at Napocor and as well as further delay in the sale of Transco due to the election campaign period.

"These (government) assets have been bleeding dry the state coffers," the President rued.

While trying not to sound over confident of her possible win in the May 10 elections to secure a full six-year term in office, President Arroyo said the power sector reforms are her top priorities to implement in the immediate term.

President Arroyo said the privatization of these state assets is also the cure to closing the gap of the consolidated public sector debt which was among the issues raised against her administration during the campaign period.