03 Sep 2007
Twenty-one investor groups have expressed interest to participate in the bidding for the 25-year concession of the National Transmission Corporation (TransCo), the Power Sector Assets and Liabilities Management Corporation (PSALM) has disclosed. The 21 groups sent their respective Expression of Interest to PSALM before the 24 August deadline for submission.
Of the 21 interested parties, nine come from the Philippines, and nine come from other Asian countries, including Hong Kong (four), Malaysia (one), China (one), Singapore (two) and India (one). The three other groups come from Spain, the Netherlands and the United Kingdom.
Thirteen of the interested bidders are represented by investment bankers, five are system operators, while the three other parties are represented by their respective law firms.
As a prerequisite to receiving the TransCo bidding package, the investor groups were required to sign a confidentiality agreement and pay a non-refundable participation fee of USD5,000. The bidding package includes the bidding procedures for the TransCo privatization, information memoranda, and the data room and due diligence procedures.
PSALM is finalizing the draft transaction documents which will be made available to bidders on Friday, 07 September. Meanwhile, the interested bidders can submit the documents required by PSALM for the prequalification stage. The prequalification submission deadline is 12 noon on Tuesday, 21 September. The bidding date is set on Wednesday, 12 December.
Bent on fast-tracking the government's power privatization program, including the TransCo concession contract, PSALM President and Chief Executive Officer Jose C. Ibazeta stressed that deadlines for the submission of pertinent documents and other requirements can be moved if and when necessary, but not the bidding date.
"The bidding components may be changed, but there will be no compromise on the 12 December bidding date for the TransCo concession," said Mr. Ibazeta, during the PSALM sponsored Investors' Forum held last 23 August.
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.
The member of the prospective bidder who meets the technical prequalification criteria must have a net asset value or market capitalization of USD500 million.
Bidders should also have the capability to form a concessionaire that will meet the 60% Filipino ownership restrictions for grantees of a public utility franchise. The largest foreign and Filipino members of the prospective bidder will also need to pass a net asset value market capitalization test.
Strategic Communications and Partnership Division |