THE National Transmission Corp., (Transco) disposed a total of P3.42 billion worth of sub-transmission assets (STA) to qualified power distribution utilities.
In its report, Transco said it has divested 131 asset and agreement packages to 107 interested distribution utilities, most of which are electric cooperatives (ECs).
The 16th Status Report on Electric Power Industry Reform Act (Epira) Implementation also said that the sale included 67 packages of STAs.
It include 325 megavolt ampere transformers acquired by 56 distribution utilities; and 40 lease purchase agreements worth P2.46 billion inked with 32 cooperatives under concessional terms.
The over P960 million balance represented the sales to private distribution utilities.
From November 1, 2009 to April 30, 2010, Transco was able to sell five contracts amounting to about P185 million and these includes the Visayan Electric Co. (P7.83 million); Manila Electric Co. (P85.84 million); Leyte 4 Electric Cooperative, Inc. (P42.21 million); Camiguin Electric Cooperative, Inc. (P38.74 million); and to Don Orestes Electric Cooperative, Inc.(P10.4 million).
Transco is also in talks with 22 distribution utilities “to further push for the sale of STAs.”
“Included in this drive is the negotiation for the sale of about 1,000 circuit-kilometers of sub-transmission lines worth P0.954 billion,” the report stated.
Under the Epira, the STAs shall be operated and maintained by Transco until their disposal to qualified distribution utilities (DUs) that are in a position to take over the responsibility for operating, maintaining, upgrading and expanding said assets.
“The transfer of ownership and control of the STAs will enable distribution utilities to expand their operations, become more efficient, serve more customers and improve service,” Transco said.
“National Grid Corporation of the Philippines would be able to focus on its core function-managing the operation and maintenance of high-voltage transmission system. Thus, the electricity consumers become the ultimate beneficiaries of Transco’s divestment program,” Transco added.
NGCP won the 25 year concession to operate Transco and took over its operation last January 2009. (MSN/Sunnex)