17 Jan 2008
The Power Sector Assets and Liabilities Management Corporation (PSALM) has signed and sent out to the winning bidder, the consortium led by Monte Oro Grid Resources Corp., the Direct Agreement on the privatization of the National Transmission Corporation (TransCo) through concession.
The Direct Agreement provides the conditions for the award of the concession to operate TransCo and the execution and delivery of the concession agreement and other final transaction documents.
With PSALM's transmittal of the Direct Agreement, the consortium must begin efforts to obtain from Congress a franchise to operate TransCo. Since TransCo is a public utility, Philippine law requires that its operator must have a franchise issued by Congress.
“The ball is now in Monte Oro’s court. The consortium by itself must prove to Congress that it is worthy of holding a franchise to operate TransCo,” said PSALM President Jose C. Ibazeta.
Congress is expected to subject Monte Oro to further scrutiny, and it may require the consortium to produce requirements distinct from those required by PSALM in the course of the bidding process.
Before executing the Direct Agreement, PSALM validated the documents submitted by the Monte Oro consortium for accuracy. PSALM did this by coordinating with relevant government agencies here and abroad and by visiting the corporate headquarters of each of the consortium members.
Strategic Communications and Partnership Division