PSALM names prequalified bidders for TransCo 25-year concession

15 Nov 2006

True to its commitment to be transparent and credible in the privatization of the government's generation and transmission assets, the Power Sector Assets and Liabilities Management Corporation (PSALM) has identified the three prequalified bidders for the 25-year concession of the National Transmission Corporation (TransCo) that will be bid out on 20 December.

The three investor groups are:

- The Consortium of Triratna Holdings Corporation (60%), Tenaga Nasional Berhad (5%) and Newbridge Asia IV, L.P. (35%). The local group, Triratna, is represented by Henry Sy Jr., Ramon Ang and Joselito Campos.

- The Consortium of Citadel Holdings Inc. (60%) and Terna SPA (40%). The group is represented by Rogelio Singson.

- The Consortium of Monte Oro Grid Resources Corporation (60%) and State Grid Corporation of China (40%). Monte Oro is represented by Walter B. Brown.

PSALM named the three bidders for the country's sole transmission arm after completing the evaluation of their respective prequalification proposals that they submitted last 28 September. The Prequalification Group composed of PSALM and TransCo technical teams conducted the evaluation based on stringent technical and financial criteria that each group adequately met.

"Our financial criteria ensure that the technical partner, the prequalifying Filipino investor and foreign investor are all financially healthy," said PSALM President Nieves L. Osorio.

The three 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 USD500 million. The Filipino investor must have a net asset value or market capitalization of at least USD300 million, or must be able to present a bank opinion that the Filipino group can fund equity investment of not less than USD300 million.

The foreign investor must have a net asset value of at least USD175 million, or present a bank opinion that it can fund equity investment of not less than USD175 million.

The prequalification process is the second stage of the entire bidding procedure for the TransCo concession. In this phase, the prospective bidders submit their proposals to PSALM for review and validation. This is to ensure that only serious bidders with proven domestic or international experience and expertise as a leading transmission system operator will be qualified to participate in the formal bidding.

The current TransCo privatization process officially started on 28 May with the publication of the Invitation to Express Interest, Prequalify and Bid.

The pre-bid conference will be held on 20 November to give prospective bidders the opportunity to clarify issues and concerns.

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