02 Oct 2006
Three prospective bidders have submitted their respective prequalification documents to the Power Sector Assets and Liabilities and Management Corporation (PSALM) which is conducting the forthcoming auction of the 25-year concession of the National Transmission Corporation (TransCo).
PSALM declined to name the members of each consortium, citing the confidentiality agreement between the government privatization arm and prospective bidders. The list of prequalified bidders will be released after the evaluation of the documents is completed. The documents were accepted and verified last September 28 at the Discovery Suites in Ortigas. The evaluation process of the prequalification documents starts immediately.
"We're very happy with the turnout of the event notwithstanding Typhoon Milenyo. Considering the stringent requirements set in the terms of reference, the three groups represent quality investors both local and foreign. This only indicates the earnestness of the parties to participate in the final bidding for the TransCo concession set in November," said PSALM President Nieves L. Osorio.
The prequalification procedure enables PSALM to assess the financial and technical capabilities of investors interested in bidding for the 25-year TransCo concession to ensure strict compliance with the provisions of the Electric Power Industry Reform Act (EPIRA).
"The prequalification process was also conducted to ensure that only serious bidders with proven domestic or international experience and expertise as a leading transmission system operator would be qualified to participate in the formal bidding," Ms. Osorio pointed out.
PSALM teams involved in the process stamped their initials on each page of the documents to indicate completion and precision in terms of the number of pages submitted vis-à-vis the bidders' receiving copies.
PSALM is now evaluating the documents and will announce the qualified bidders for the TransCo concession in about a month's time.
Among those who witnessed the proceedings were newly appointed TransCo President Arthur Aguilar and Assistant Chief State Counsel Ruben Fondevilla, who regularly attends the PSALM board meetings representing Justice Secretary Raul Gonzales.
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 |