"We have already secured an approval from the World Bank and the Asian Development Bank (ADB). We are waiting for the consent of Japan Bank for International Cooperation (JBIC)," Finance Secretary Margarito Teves said yesterday.
Teves said the slow progress in Napocor privatization is one of the major concerns raised by the international investors’ community during his three-week official trip to the US and London.
"This approval transferring the assets of Napocor to PSALM is a welcome development and we are hoping to sell 50 to 70 percent by next year," Teves said.
Finance Undersecretary Roberto Tan, for his part, said the WB has given its approval in principle.
"There are still some issue like the financial covenant on debt service ratio that we are discussing with WB. But last month, the WB has already approved the transfer of assets in principle," Tan said.
Tan said they are still awaiting the decision of JBIC on this matter. "JBIC said it is just waiting the decision of the major multilateral creditors. Since ADB and WB have given their consent, maybe JBIC will also approve it. But JBIC said they have to consult with their Ministry of Finance first," Tan said.
Among the Napocor assets that JBIC has official development assistance (ODA) loans are: Calaca thermal power plant, Tongonan, Tiwi and Makban geothermal power facilities.
The non-ODA or international finance account of JBIC, on the other hand, include: Ilijan natural gas-fired power plant and San Roque Multi-purpose plant.
According to Tan, they are still optimistic that the Masinloc sale will be consummated before the end of the year.
"As far as we are concerned, the proceeds from the first installment will come in by yearend," he said.
Early this year, WB and JBIC agreed to give their consent on the transfer of Napocor’s assets which were sold last year.
The WB’s and JBIC’s consent to the award and sale to winning bidders by PSALM covers the following generation assets: the 3.5 MW Talomo hydroelectric plant (HEP) located in Barrio Mintal, Talomo, Davao City; the 1.6 MW Agusan HEP in Manolo Fortich, Bukidnon; the 1.8 MW Barit HEP in Buhi, Camarines Sur; the 0.4 MW Cawayan HEP in Sorsogon City, Sorsogon; and the 1.2 MW Loboc HEP in Bohol.