Thursday, July 19, 2007 State power firm secures 100M-dollar loan for projects
ENERGY Secretary Raphael P.M. Lotilla said the National Transmission Corporation (Transco) has acquired a US$100 million-loan from international investment bank Calyon Group to finance its priority transmission projects.
The loan will be used specifically to finance the upgrading, expansion and rehabilitation of Transco's facilities.
Calyon is Crdit Agricole's corporate and investment banking entity. Calyon was created in May 2004 by the transfer of Cr dit Lyonnais' Corporate and Investment Banking division to Crdit Agricole Indosuez.
Transco is set to be re-bid in December and the Power Sector Assets and Liabilities Management (Psalm) Corporation is preparing its terms of reference (TOR).
In 2006, Transco posted a net income of P19.4 billion, higher by 20 percent than the P16.1 billion it earned in 2005. Its liabilities was placed at P12.448 billion with current debts reaching P6.7 billion due to the National Power Corporation (Napocor) for ancillary service, P55 million to Psalm for universal charges and P5.66 billion for accounts payable, retention of contract payments and deposit and trust funds.
Transco already completed the Panay-Boracay, San Roque-San Manuel and Bauang-San Esteban transmission line as well as upgraded the Wright substation in Samar.
Transco is completing several projects in Luzon, Visayas and Mindanao this year.
In Luzon, Transco is finishing Bauang-San Esteban 230-kilovolt (kv) Line Stringing Project that will help ensure adequate power in the Ilocos region, the New Gamu Substation Project and the Tap Hermosa-Balintawak 230-kv transmission line project.
Two crucial projects in the Visayas - the Leyte-Samar Reinforcement Project and the Cebu III Transmission Project that will free the Banilad Substation and improve power transmission in the area - are expected to be completed before the end of 2007. (MSN/Sunnex)
