30 Nov 2007
Power Sector Assets and Liabilities Management Corporation (PSALM) President Jose C. Ibazeta said privatization efforts would succeed this year despite dubious issues that have been raised against the integrity of the privatization process.
"The case against PSALM's alleged bias resulting in the disqualification of a TransCo (National Transmission Corp.) bidder is already in court. I have great faith in our judicial system as I have in PSALM's prequalification procedure," he said.
Fresh from the success of the bid for the 175-megawatt (MW) Ambuklao-Binga hydropower plants on 28 November, President Ibazeta is optimistic that PSALM will hit its target of privatizing 70% of operating capacities in Luzon and the Visayas by 2008. Ambuklao-Binga was successfully bid out to SN Power Aboitiz for USD325 million, bringing PSALM closer to its target of 50% by 2007.
"We welcome the move by the Power Commission to scrutinize the privatization process, but we need to remain focused on our goal - 50% by 2007 and 70% by 2008. I have already given my reply to the JCPC on the allegations on conflict of interest. The 339-MW Palinpinon geothermal-Panay diesel power plant package is next, and the fact that prospective bidders are undeterred by the recent issues is a clear indicator of their confidence in our process," President Ibazeta emphasized.
On the allegation that the Aboitiz group and Mr. Buboy Macapagal also have interests in the TransCo concession, President Ibazeta said there was nothing in the documents required from the prospective bidders that linked the Aboitizes or Macapagal to the TransCo bid.
"The law is clear. There is no cross ownership between generation and transmission and PSALM complies with this provision conscientiously," he stressed.
Strategic Communications and Partnership Division |