26 Jan 2007
The Energy Regulatory Commission (ERC) yesterday assured the three investor groups bidding for the 25-year concession of the National Transmission Corporation (TransCo) of transparency and stability in the regulatory framework that would guide the business operation of TransCo.
Speaking on behalf of the ERC, Commissioner Rauf A. Tan eased fears of regulatory risk in the privatization of TransCo during a forum organized by the Power Sector Assets and Liabilities Management Corporation (PSALM), the government agency tasked to privatize TransCo.
"We have a transparent and stable regulatory regime, and there will be no arbitrary changes in the rules," Commissioner Tan said.
The forum aimed to facilitate discussion and clarification of regulatory concerns. It was attended by representatives from the consortium of Triratna Holdings Corporation, Tenaga Nasional Berhad and Newbridge Asia; the consortium of Citadel Holdings Inc. and Terna SPA; and the consortium of Monte Oro Grid Resources Corporation and State Grid Corporation of China. Also present in the forum were PSALM President and CEO Nieves L. Osorio, who acted as moderator, and TransCo President Arthur N. Aguilar.
Last week, Finance Secretary Gary B. Teves and Energy Secretary Raphael PM Lotilla, who sit in the PSALM Board as chairman and vice chairman, respectively, announced the rescheduling of the TransCo bid to February. They said it was "to give the PSALM management and prospective bidders additional time to thresh out some important legal and commercial issues to ensure a sustainable long-term concession contract which is fair to both the Philippine government and the bidders." PSALM issued the final bid documents to the bidders on 22 January.
"While it is our responsibility to privatize TransCo at the soonest, it should not prejudice the quality and integrity of the process. The bigger responsibility is to protect government interest and provide a fair return of investment to the prospective concessionaire," Pres. Osorio said.
As the operation of a transmission system is a public utility, the concessionaire should be at least 60% Filipino-owned. The consortium arrangements of all three prequalified bidders met the said requirement.
Strategic Communications and Partnership Division |