01 Dec 2007
Power Sector Assets and Liabilities Management Corporation (PSALM) President Jose C. Ibazeta expressed confidence that the bidding for the 25-year concession contract for the National Transmission Corporation (TransCo) would push through as scheduled on 12 December despite efforts by some parties to stop the bidding.
"Unless PSALM receives an order from the court, we will push through with the TransCo bidding," stressed Mr. Ibazeta, who reserved his comment on the case filed by disqualified bidder La Costa Development Corporation seeking to stop the TransCo bidding. Mr. Ibazeta cited the sub judice rule.
"At this point, it is all up to the courts," Mr. Ibazeta said. "As I have said, my faith is strong in our judicial system and in PSALM's prequalification procedure."
Commenting on news reports that quoted him as saying that La Costa could still take part in the TransCo bidding if the consortium could comply with certain requirements, Mr. Ibazeta qualified that the PSALM board already made the ruling, which means that it could no longer consider La Costa's prequalification requirements.
"The prequalification period has long been over," Mr. Ibazeta pointed out. "The board has prequalified four bidders. What would bidders and the financial community say if we change the rules in midstream to accommodate one more bidder? To be sure, they will wonder if we're serious about our bidding procedures. This is our fourth attempt at privatizing TransCo. I doubt if the investors will come back if this round does not push through."
President Ibazeta reiterated that he welcomes any investigation of the PSALM bidding process even as he wondered "why people are trying to stop a good thing."
"I am hoping that the TransCo bidding will push through for the benefit of the country," he said, noting the optimism of the participating investor groups in spite of the various issues that have been raised. "The bidders say they are here to make an investment. This small window of opportunity for investments to come into the energy sector will not be around forever. So it's really our loss if the TransCo bidding fails again."
Strategic Communications and Partnership Division |