23 Aug 2007
The Philippine economy, particularly the electric power industry, received a vote of confidence anew from the business community as at least 150 representatives of the country's various sectors attended the annual Investors' Forum sponsored by the Power Sector Assets and Liabilities Management Corporation (PSALM), the government's power privatization arm.
The attendees included officials and representatives from foreign- and locally-owned companies involved in electric utilities, banks and financial institutions, international creditors, government agencies, and members of the energy family.
The forum, held yesterday (23 August 2007) at the Dusit Hotel Nikko in Makati City, sought to update investors and other stakeholders on investment prospects in the privatization of National Power Corp.'s generation assets and the transmission business of the National Transmission Corp. (TransCo), the management of the power outputs of National Power-owned independent power producers, as well as developments in the operation of the Wholesale Electricity Spot Market (WESM).
The event also aimed to keep investors and creditors posted on the regulatory framework under a restructured Philippine power industry and status of power sector reforms.
In his opening remarks, PSALM President and Chief Executive Officer Jose C. Ibazeta assured the investors that the government remains committed to pursue the power sector reforms as stipulated in the Electric Power Industry Reform Act (EPIRA), sustain their interest in the power sector, and encourage them not only to expand existing capacities but also to put up new capacity additions.
Mr. Ibazeta pointed out that the restructuring of the country's power industry aimed to create a competitive environment that would be fostered primarily through the privatization of government's power infrastructure or broadening the industry's ownership base via the entry of more capital from the private sector.
"Ultimately, competition should improve the delivery of power services and bring down power rates in the country, which is one of the two recent directives of President Gloria Macapagal-Arroyo. The other is the acceleration of the power privatization program," he said.
PSALM is on the right track as far as fast-tracking the privatization of National Power's generating assets is concerned, said Mr. Froilan A. Tampinco, PSALM vice president for Asset Management and Electricity Trading.
After the successful sale of the Masinloc power plant last July, PSALM is set to auction off the Calaca coal-fired power plant in October, the Ambuklao-Binga hydropower facilities in November, and the TransCo concession in December. Plans are also afoot to bid out the Palinpinon geothermal plant and the Panay diesel facility as one package, and the Tiwi-Makban geothermal complex before the year ends.
"From 11% in 2006 to 50% in 2007, we expect to hit the 70% requirement for open access by end-2008 and complete the sale of the remaining plants in Luzon and Visayas by 2009," Mr. Tampinco said.
For his part, Finance Secretary Gary B. Teves said the government's objective to accelerate the power privatization program "brings us closer to the realization of the policy reforms in the electric power industry."
Expressing his appreciation for the significant turnout of participants in the Investors' Forum, Mr. Teves hopes that the occasion will further stimulate the "dynamic partnership with private players to allow them greater participation in the government's investment infrastructure, particularly in power generation and supply sector, and boost investors' enthusiasm and confidence in the Philippine power industry."
The other speakers included Department of Energy (DOE) undersecretary Mariano S. Salazar, Energy Regulatory Commission Chairman Rodolfo B. Albano Jr., and Mr. Robinson P. Descanzo, vice president for operations planning and business development-Market Operations Group, Philippine Electricity Market Corporation.
The forum was also graced by DOE undersecretary Melinda Ocampo who briefed the participants on the two directives of President Arroyo.
Strategic Communications and Partnership Division |