Friday, October 10, 2008 Transco assets in Luzon sold
STATE-owned National Transmission Corporation (Transco) has completed the sale of its sub-transmission assets (SATs) in Luzon.
Transco president Arthur Aguilar said Manila Electric Company (Meralco) and Subic Enerzone Corporation (SEZC) signed the sale contracts and paid the full amount for the Transco assets amounting to P187.76 million and P131.04 million, respectively, or a total of P318.8 million.
The ownership, operation, and maintenance of Transco's STAs will now be transferred to Meralco and SEZC.
The Energy Regulatory Commission approved both contracts on June 30, 2008 and April 30, 2008, respectively.
The contracts were signed between Aguilar, Meralco president Jesus Francisco and SEZC president Jaime Jose Aboitiz.
Over P2.6 billion worth of Transco's STAs have been divested since 2004.
The Meralco deal involves various structures in northern Luzon, including one 13.8-kilovolt (kV), five 34.5-kV and two 69-kV lines, all in Bulacan; and two 69-kV lines in Pampanga. In southern Luzon, the purchased structures include one 69-kV line in Laguna and three 115-kV lines in Cavite.
Meralco is the country's largest electric distribution utility with a franchise area covering Metro Manila; the entire provinces of Rizal, Bulacan and Cavite; and parts of Pampanga, Laguna, Quezon and Batangas.
Meanwhile, SEZC purchased 7.24 circuit-kilometers of sub-transmission lines including the Olongapo-SBMA Lines 1, 2 and 3 and the Subic-SBMA Line 4 and the disconnection switches at the Kalaklan Metering Point.
Subic Bay is home to various industries ranging from electronic communications technology companies, world-class hotels, housing units and convention complexes on prime waterfront sites to shopping malls and high rise-buildings.
The Electric Power Industry Reform Act (Epira) of 2001 mandates the divestment of Transco's sub-transmission assets or lines typically rated at 69 kV and directly connected to distribution utilities.
Privatizing the sub-transmission assets will, in the long run, be beneficial to power customers. By purchasing these assets, distributors will be able to improve their operations and expand their franchise area, thereby serving more customers.
Transco, on the other hand, will be focusing on improving the reliability and efficiency of the high-voltage transmission network. (MSN/Sunnex)
