14 Nov 2007
The Power Sector Assets and Liabilities Management Corporation (PSALM) has prequalified four of the five interested bidder groups for the 25-year concession to operate the National Transmission Corporation (TransCo). The four qualified bidders will participate in the final stage of the TransCo bidding process, which is the submission of the technical proposal and financial bid scheduled on 12 December.
PSALM confirmed the prequalified bidder groups as the (1) consortium of Monte Oro Grid Resources Corporation (MOGRC) and State Grid Corporation of China (SGCC); (2) consortium of Two Rivers Pacific Holdings Corp. and Terna-Rete Electtrica Nazionale S.P.A.; (3) San Miguel Energy Corp. and TPG Aurora B.V.; and (4) consortium of Citadel Holdings Inc. and Power Grid Corporation of India Limited.
Monte Oro is represented by its chairman and president Walter W. Brown, Two Rivers is represented by its president Jose Ma. K. Lim, San Miguel Corporation chairman and president Ramon S. Ang represents San Miguel Energy, while Amelia S. Dela Rosa represents Citadel.
The Prequalification Group composed of the technical teams of PSALM and TransCo conducted and completed the evaluation of the prequalification proposals.
The results of the prequalification process were finalized after the reconsideration period as provided in the bidding procedures and the Government Procurement Reform Act. The PSALM Board issued its decision on the motion for reconsideration after seven calendar days, or on 14 November.
The PSALM Project Management Team for the TransCo privatization, in coordination with its TransCo counterpart, thoroughly evaluated the prequalification proposals of the interested bidders to ensure the accuracy, authenticity, completeness, veracity and validity of all documents and information submitted in compliance with the prequalification criteria.
The second stage of the TransCo privatization process, the prequalification procedure enables PSALM to assess the financial and technical capabilities of the investor groups interested in bidding for the TransCo concession. The procedure assures strict compliance with the provisions stipulated in Republic Act No. 9136, the Electric Power Industry Reform Act.
The prequalification process is conducted to ensure that only serious bidders with proven domestic or international experience as a leading transmission system operator will be qualified to participate in the final bidding.
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, consisting of not less than 6,000 circuit kilometers of transmission lines operating at 115 kilovolts (kV) or higher. This includes a system operating at not less than 230 kV and having a peak demand of at least 6,000 megawatts. 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 concession that will meet the 60% Filipino ownership restrictions for grantees of a public utility franchise as stipulated in the Philippine Constitution.
The largest foreign and Filipino members of the prospective bidder will need to pass a net asset value or market capitalization criteria.
Based on the results of its regular dialogue with the prospective TransCo bidders, PSALM is finalizing the transaction documents for the concession. PSALM also conducted a series of management presentations last 6-8 November to discuss with the bidders relevant information about the transmission business. PSALM also held a prebid conference last Thursday (15 November) to allow bidders to air their comments on the bidding transaction documents.
Strategic Communications and Partnership Division |