TransCo bidding set for November

18 Aug 2006

The Power Sector Assets and Liabilities Management Corporation (PSALM), the agency tasked to privatize the assets of the National Power Corp., including its transmission facilities, has set Tuesday, 07 November 2006 as the bidding date for the 25-year concession to construct, finance, operate and maintain the facilities and assets and implement the rehabilitation and expansion program of the National Transmission Corporation (TransCo).

Prequalified bidders must submit on this date their respective technical and financial bid proposals representing their proposed concession fee, said PSALM Vice President for Finance Nonito R. Bernardo Jr.

Mr. Bernardo said interested bidders who had paid the required participation fee and secured their transaction documents would soon be submitting documents required for the prequalification process. PSALM would then announce the bidders prequalified to join the public bidding.

In mid-October, PSALM will hold a pre-bid conference where prequalified bidders will be invited to raise issues regarding the proposed sale procedures, including the terms and conditions, for the TransCo concession.

Mr. Bernardo reminded bidders that failure to acknowledge receipt and acceptance of the terms and conditions of the bidding procedures could result in the disqualification or outright rejection of their bid.

Bidders for the TransCo concession must have a member or affiliate with experience in operating and maintaining electricity transmission systems comparable to that of the Philippines, with at least 6,000 circuit kilometers, a minimum 6,000 megawatts peak demand and a voltage level of 115 kilovolts (kV) to 230 kV.

At the same time, the member of the prospective bidder who meets the technical prequalification criteria must have a net asset value or market capitalization of $500 million.

Bidders should also have the capability to form a concessionaire who will meet the 60% Filipino ownership restrictions for grantees of a public utility franchise. The largest foreign and Filipino members of the prospective bidder will also need to pass a net asset value market capitalization test.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067