Sunday, July 01, 2007 Davao power coop wins P67M deal with Transco
DISTRIBUTION utility Davao Oriental Election Cooperative (Doreco) has bagged a P67.1 million lease purchase agreement with the National Transmission Corporation (Transco) for the sale of its sub-transmission assets.
The contract covers 57.18 circuit-kilometers of lines and 420 structures including the Manikling-San Isidro and Pintatagan-Mati 69-kiloVolt lines and the Pintatagan Switching Facility.
Transco president Arthur Aguilar said the agreement, which was mandated under the Electric Power Industry Reform Act (Epira) of 2001, has brought to P2.09 billion the total sub-transmission asset sales since Transco’s divestment program started in 2004.
“We are coordinating closely with the ERC to ensure that these sub-transmission assets are divested only to technically and financially-qualified distribution utilities (DUs) in the most transparent and thorough process,” Aguilar said during the signing of the agreement Thursday with Doreco board president
Villanueva Olea and general manager Gregory Dukil.
Under the contract, Doreco will pay Transco P13.41 million or 20 percent down payment once the Energy Regulatory Commission (ERC) approved the agreement while the balance is payable in 18 years.
Doreco supplies electricity to Mati City and to the municipalities of Lupon, Banay Banay, San Isidro, Baganga, and Cateel in Davao Oriental and it is the 12th distribution utility in Mindanao to enter into a divestment agreement with Transco.
Under the Epira, all sub-transmission divestment contracts become effective only upon the approval of the ERC.
So far, ERC has approved three sub-transmission divestment contracts while 10 others are still waiting for its approval.
Aguilar said electric cooperatives that are interested in acquiring the assets have the option to pay in cash or enter into a more affordable and manageable lease purchase agreement with Transco. (MSN/Sunnex)
