by Myrna Velasco, 19 July 2015
from Manila Bulletin
The continuing divestments of sub-transmission assets of the National Transmission Corporation (TransCo) have increased its proceeds to P5.9 billion.
The company has reported that the asset disposal process already covered 131 sale contracts with 107 distribution utilities and electric cooperatives as purchasers.
TransCo has emphasized that such assets had been for a stretch of 5,900 circuit-kilometers of mostly 69-kilovolt transmission lines and 1,600 megavolt ampere (MVA) of substation capacity.
The sub-transmission assets (STAs) have been sub-categorized and placed under the charge of TransCo prior to the privatization of the country’s transmission facilities via a 25-year concession agreement.
The Electric Power Industry Reform Act (EPIRA) has mandated the divestments of the STAs to interested power utilities.
The law even provided for a flexible payment arrangement for the purchasers, primarily the electric cooperatives which were widely perceived to have leaner financial base.
TransCo has reported that as of April this year, it already firmed up 112 sale contracts with 80 distribution utilities and ECs.
Of the total, it noted that 51 contracts worth P2.7 billion have already cornered the final go-signal of the Energy Regulatory Commission (ERC).
The approved sale amounts, it was noted though, had been lower than original estimates partly due to the lower amount of valuation which was used by the ERC as a basis.
A report to the Department of Energy (DOE) has stipulated that “five contracts with a total amount of P110 million were disapproved and one contract amounting to P24.2 million was withdrawn (from) the ERC.”
According to TransCo, “the rest of the sale contracts are for filing for ERC’s evaluation and approval.”
Onward, the state-run transmission firm has noted that it will be pushing for the sale of its remaining 160 circuit-kilometers of sub-transmission lines and 25MVA of substation equipment to three (interested) DUs or consortia-takers.