Dasureco president Artemio Tajon said the company will source the 20 percent downpayment worth P24.3 million for the purchase from its savings.
Tajon said the remaining P100 million will be borrowed from the Development Bank of the Philippines (DBP).
TransCo president Alan T. Ortiz assured that the purchase of the STAs in Davao del Sur will not result in increase in power rates but will enhance transmission services to the 85,000 customer-members of the electric cooperative in the franchise area.
"Today’s contract signing with Dasureco is made more significant by the fact that we are celebrating the fifth anniversary of EPIRA (Electric Power Industry Reform Act) and the creation of TransCo. Our commitment to EPIRA and the reforms it espouses is further manifested with the headways we are making in the divestment of our STAs," Ortiz said.
The lease purchase agreement will be payable in 18.75 years. It involves four sub-transmission lines spanning a total of 111.7 circuit kilometers. These include the Davao-Digos single circuit, Digos-Malita single circuit, Matanao-Bansalan single circuit and Matanao-Cut-in double circuit, all rated at 69 kilovolts.
The agreement is expected to boost Dasureco’s capacity to improve the reliability and efficiency of electric services to its customers. Its service area includes Digos City and the 14 municipalities of Davao del Sur.
The sale marks the 26th sub-transmission asset divestment agreement entered into by TransCo with qualified distribution utilities.
TransCo signed earlier a P4.25-million contract with the Misamis Occidental Electric Cooperative II (MOELCI-II ) for the 8.56 circuit-kilometer, 13.8-kv Ozamis Tie line. The amount is payable in two years.
To date, total sales of TransCo’s sub-transmission assets stands at slightly over P1.4 billion, comprising 8,608 structures and spanning 995 circuit-kilometers.
As stipulated in the EPIRA, TransCo shall divest ownership of its sub-transmission functions and assets to qualified distribution utilities connected to such facilities.