09 Mar 2007
Newly-appointed Power Sector Assets and Liabilities Management Corporation (PSALM) President and Chief Executive Officer Mr. Jose C. Ibazeta intends to harness his 40-year long experience in the private sector to fast-track the privatization of the assets of the National Power Corporation, including its transmission system being operated by the National Transmission Corporation (TransCo).
Mr. Ibazeta is looking to tap the vast network he has established through the years in fulfilling the mandate of PSALM as stipulated in the Electric Power Industry Reform Act (EPIRA).
Mr. Ibazeta, however, dismissed insinuations reported in one major newspaper that he would use this vast network to "entice" companies with which he has established a cordial relationship over the years to participate in the sale process of National Power's assets.
"The nature of business is you never say no to an opportunity," he pointed out. "To be sure, investor groups interested in bidding for the National Power assets will tap companies within and outside this network to handle financial operations, become technical partners, or be part of a consortium because the privatization market is a small one. This is what we do in the business world."
"I'm hoping the investors will come," he said. "The door is open to everybody so long as they adequately meet all the requirements of PSALM in the bidding procedures. It will be a level playing field."
Mr. Ibazeta's focus now centers on the 600-megawatt Masinloc coal-fired power facility which PSALM expects to auction off in July. "As every day comes, I'm getting more and more optimistic about Masinloc," he said.
His upbeat outlook has basis since PSALM is currently working with the Department of Energy and National Power on the attachment of transition supply contracts for Masinloc to entice more investors to participate in the power plant's scheduled bidding exercise.
Mr. Ibazeta also expects the sale process to run smoothly since PSALM has already obtained the consent of National Power's major creditors - the Asian Development Bank, the Japan Bank for International Cooperation, and the World Bank.
"If we're successful in Masinloc, and there's no reason to think otherwise, we move on to TransCo, which we're currently studying even as we prepare for the Masinloc auction," said Mr. Ibazeta. He agrees with Finance Secretary Gary B. Teves that securing a congressional franchise for TransCo, even before its 25-year concession is bid out, will definitely enhance its marketability.
Strategic Communications and Partnership Division |