"They do not believe in this kind of exercise. Besides there are conditions which they perceive to become a problem in the future," the source said.
The source said one of the concerns raised by prospective bidders of TransCo is the condition within which the winning bidder will apply for its own franchise.
"It would be a problem. It would be very expensive especially if the application will come on an election year unless the winning bidder will have lots of money to spare," the source pointed out.
Another possible problem, the source said, is the 60-40 percent ownership sharing between Filipino and foreign bidders.
But the source admitted that EGAT’s former Filipino partner will still hold discussions this week to mull their other options.
"They would meet to see if they would still be bidding for TransCo. They want to make sure that they would still have time to negotiate with new partners," the source said.
According to the source, the former Filipino partner of EGAT, will now be tapping a foreign fund manager as its new partner. "We cannot disclose yet but this would involve a foreign bank."
EGAT was earlier reported to have submitted the highest bid for TransCo when the Power Sector Assets and Liabilities Management Corp. (PSALM) auctioned off the concession contract of the transmission highway about two years ago.
PSALM, in-charge of disposing Napocor generation and transmission assets, earlier said there are seven groups eyeing to participate in the bidding of TransCo this September.
Industry sources earlier said EGAT was reportedly be joined by Citra of the Salim Group to handle the technical aspect while Northeast Development and Acquisition Corp. (NEDAC) will be in charge of the financial side.
Sources said another group that signified interest for TransCo consists of Japan’s Tokyo Electric Corp. and US-based Trans-Electric (for technical); and San Miguel Corp. and Morgan Stanley (for financial).
The other group, sources said, is reportedly composed of First Pacific Co. Ltd. (financial) and Trans-Grid of Australia (technical).
Another group is composed of Hydro Quebec for the technical aspect and SNC Lavalin to be in charge of the financial requirement of the consortium.
Singapore Power Corp., the lone bidder during the two previous biddings conducted by PSALM for TransCo, has reportedly decided to take the sideline this time. However, Concepcion Industries, which has plans of bidding for TransCo, has reportedly been wooing SPC to provide its technical expertise to the group.