Government may rebid TransCo

The government is likely to rebid the 25-year concession contract of the National Transmission Corp. (TransCo).

This after President Arroyo said she is inclined to consider another bidding round for the TransCo assets. “I’m leaning towards a rebid,” Arroyo said, during a round table discussion in Malacañang yesterday.

In a separate interview, Energy Secretary Raphael Lotilla, however, said the board of the Power Sector Assets and Liabilities Management (PSALM) still has to decide on the TransCo issue “as soon as possible”.

Lotilla, who is also PSALM vice chairman, said the decision on when to rebid or enter into a negotiated sale will definitely come before the election period.

PSALM chairman and Finance Secretary Margarito Teves was not available for comment as of press time.

Lotilla said they have been trying to deliberate carefully on this matter as this will involve the reliability of power supply in the country in the future.

“We are basically concerned about the process. The PSALM board will make the announcement as soon as possible. But right now the PSALM board has not made that decision, and has to weigh all factors to ensure that whatever decision will be made will be fair not only to the government but to the investors as well and that announcement will not have to wait after election,” Lotilla said.

The Energy chief clarified that there are several factors that need to be considered by the board before making the decision.

“As I said, let’s look at all factors involved. We need to weigh the need for transparency and the need to finalize the deal that will be advantageous for all. The other consideration is to ensure that the public is also comfortable with the outcome,” he said.

In a bidding last Feb.5, only one bidder, Citadel Holdings/Terna SPA of Italy , submitted a bid.

One of the three pre-qualified bidders, Triratna Holdings/Newbridge/Tenaga Berhad, has signified its interest to participate in the rebidding if the government resolves issues raised by the group.

Another prequlified bidder, Monte Oro/State Grid of China, which also did not submit a bid last Feb. 5, has been silent as to whether it will join the rebidding or not.