Transco all set‏ for Dec 12 bidding

MANILA, Dec. 11 (PNA) -- The Power Sector Assets and Liabilities Management Corporation (PSALM) on Monday said that all is ready for the upcoming auction on Wednesday of the 25-year concession of the National Transmission Corp., (TransCo).

“We are all set,” said PSALM President and Chief Executive Officer Jose Ibazeta, who stressed that only the right to operate TransCo through a concession and not the corporation and its assets would be bid out.

“This is the strategy approved by the President as early as five years ago, and the soundness of this privatization mode is affirmed by the consistent — even increasing —interest from potential bidders,” he added.

Ibazeta said the winning bidder will have the exclusive right to operate TransCo but the government will retain ownership of the strategic transmission assets and pending the award of the franchise from Congress will still control the assets.

The winning concessionaire will be the one to secure a congressional franchise since the franchise it issued to TransCo is non-transferable.

“The concessionaire will also be responsible for rehabilitating and expanding TransCo in accordance with the Transmission Development Plan and other guidelines set by the Energy Regulatory Commission,” he explained.

Ibazeta also noted that several mechanisms are in place to protect the public interest.

“The bidders are, thus put on notice that their equity structure and their financial and technical capability will be subject to intense deliberation and evaluation,” he said.

PSALM is hoping to get higher than $ 3-billion offer from the four qualified bidders of TransCo.