Sale of Transco’s P250-M asset seen
Manila Times, Monday, January 03, 2005
STATE-RUN National Transmission Corp. (Transco) is set to close a deal involving the sale of sub-transmission assets to Aboitiz Equity Ventures (AEV), Alan T. Ortiz, Transco president and chief executive, said.
“We’re currently negotiating with the Aboitiz group for another P250 million worth of sub-transmission assets that are within its franchise areas,” Ortiz said in an interview.
He said the terms of the sale only need a “little fine-tuning” before the deal is finalized.
On top of the Aboitiz deal, the government expects to sign six more contracts this month, Ortiz added.
He also disclosed a meeting with Manila Electric Co. (Meralco) officials, who have expressed interest in buying transmission assets worth P500 million located within its franchise area.
The Lopez-led utility, which has yet to submit its acquisition program, has indicated willingness to start negotiations, Ortiz said.
Meralco has already offered to buy the assets through a deferred payment scheme, he said, adding Transco is evaluating the distributor’s proposal in light of its “improved financial status.”
The Lopez-led utility recently secured the approval of creditors for a longer repayment period for its debts.
“We think the terms have to be slightly different,” Ortiz said, without elaborating.
He said the government’s power assets sale program is gathering momentum, a clear sign that the industry has come to terms with the Wholesale Electricity Spot Market (WESM).
“Distribution utilities are now anticipating the onset of open access,” he said. “And in an open-access regime, distribution utilities will benefit a lot if they own the lines.”
STATE-RUN National Transmission Corp. (Transco) is set to close a deal involving the sale of sub-transmission assets to Aboitiz Equity Ventures (AEV), Alan T. Ortiz, Transco president and chief executive, said.
“We’re currently negotiating with the Aboitiz group for another P250 million worth of sub-transmission assets that are within its franchise areas,” Ortiz said in an interview.
He said the terms of the sale only need a “little fine-tuning” before the deal is finalized.
On top of the Aboitiz deal, the government expects to sign six more contracts this month, Ortiz added.
He also disclosed a meeting with Manila Electric Co. (Meralco) officials, who have expressed interest in buying transmission assets worth P500 million located within its franchise area.
The Lopez-led utility, which has yet to submit its acquisition program, has indicated willingness to start negotiations, Ortiz said.
Meralco has already offered to buy the assets through a deferred payment scheme, he said, adding Transco is evaluating the distributor’s proposal in light of its “improved financial status.”
The Lopez-led utility recently secured the approval of creditors for a longer repayment period for its debts.
“We think the terms have to be slightly different,” Ortiz said, without elaborating.
He said the government’s power assets sale program is gathering momentum, a clear sign that the industry has come to terms with the Wholesale Electricity Spot Market (WESM).
“Distribution utilities are now anticipating the onset of open access,” he said. “And in an open-access regime, distribution utilities will benefit a lot if they own the lines.”
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