Thursday, February 08, 2007
Foreign investors still keen on buying state power firm
DESPITE the failed bidding of the 25-year concession of the National Transmission Corporation (Transco) last Monday, investors said on Wednesday that they are still interested in acquiring the transmission utility.
Dante Ibasco, legal counsel of the joint venture between Trirantna Holdings Corporation, Tenaga Nasional Berhad of Malaysia and New Bridge Asia IV LP, said Transco would always be an "attractive asset" to them.
"We continue to be interested in Transco. It's a very attractive asset and I think our partners continue to have a commitment to this asset," Ibasco told reporters.
Ibasco however said what held back the consortium from participating in the bidding last week was not just the issue of "joint solidary liabilities" but other documentary issues which the Power Sector Assets and Liabilities Management Corporation (Psalm) failed to resolve.
"We are ready to make an attractive offer for Transco subject to an agreement in the transaction documents. We never got a resolution when we sought for clarification. It's more of documentary issues that had to be resolved and I think there was not much sufficient time for all parties to negotiate the document," he said.
"The final documents that were released did not reflect the amendment we will have wanted to see," he added.
Walter Brown, chairman of the Philex Mining Corporation, which is also one of the bidders under the consortium of the Monte Oro Grid resources and State Grid Corporation of China, also expressed willingness to invest and run Transco provided that the issues they raised are clarified and resolved.
But Energy Secretary Raphael P.M. Lotilla said they have resolved all the issues involving the acquisition of Transco and concerns of the bidders.
Only the consortium led by Citadel Holdings Corportion and Sterna SpA submitted their bid last Monday, thus prompting the Psalm to declare a failure of bidding.
Rogelio Singson, spokesman for Citadel Holdings, threatened that they will withdraw from the bidding if the government decides to re-bid Transco instead of entering into a negotiated deal.
The Psalm, headed by Finance Secretary Margarito Teves, will rule on Friday on whether to re-bid or enter into a negotiated deal with Citadel Holdings. (MSN/Sunnex)
For more Philippine news, visit Sun.Star Iloilo. (February 8, 2007 issue)
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