13 Oct 2006
The International Finance Corporation (IFC), the private sector arm of the World Bank, has offered to provide financing support to the winning bidder of the 25-year concession of the National Transmission Corporation (TransCo), the country's sole transmission arm.
IFC, which provides financing for projects in less developed countries and promotes private enterprise in developing nations, has substantially invested in the Philippine power sector since the 1960s.
"IFC would be pleased to consider working with the winning bidder [of the TransCo concession] on mutually acceptable terms, in an effort to determine the feasibility of the proposed financing and the potential for IFC support," said Mr. Vipul Bhagat, IFC country manager for the Philippines and Thailand, in his Oct. 10 letter to the Power Sector Assets and Liabilities Management Corporation (PSALM), the agency tasked to handle the privatization of TransCo.
The letter stated that any such support in the form of debt financing, quasi-equity or equity investment would be subject to IFC's "comfort with the shareholding group, a satisfactory completion of legal, environmental, technical and financial due diligence, approval by IFC's management and board of directors, and execution of mutually satisfactory documentation."
"We highly appreciate the willingness of IFC to financially support the future TransCo concessionaire," said PSALM President and Chief Executive Officer Nieves L. Osorio. "This affirms IFC's strong faith in the country's power sector and at the same time strengthens the resolve of potential bidders to participate in the final bidding for the TransCo concession set in November."
Three interested bidders for the concession submitted their prequalification proposals to PSALM last 28 September. PSALM will announce the qualified bidders as soon as it completes the deliberation and validation of the financial and technical capabilities of these three investor groups.
Strategic Communications and Partnership Division |