TransCo sells P27-M assets

Consistent with the power reform law, the National Transmission Corp. (TransCo) has sold about P27-million worth of sub-transmission assets (STAs) within the franchise area of Bohol II Electric Cooperative Inc. (Boheco II).

The assets include the three-kilometer Ubay-Popoo 13.8-kilovolt line as well as the Garcia Hernandez and Ubay substation equipment.

Based on the sale agreement, Boheco II will give TransCo a one-time payment of about P26.68 million for the acquisition.

“The potential revenue is interpreted as the benefit foregone TransCo in selling the sub-transmission assets to a qualified distribution utility,” the Energy Regulatory Commission (ERC), which allowed the sale, said

The STA divestment is part of TransCo’s efforts to pursue power sector improvement as mandated by the Electric Power Industry Reform Act (EPIRA) of 2001.

The EPIRA provides that STAs shall be disposed to qualified distribution utilities (DUs) and electric coperatives (ECs). But the unsold STAs would be left in the hands of TransCo until such time that the DUs are ready to acquire the assets.

Under the EPIRA, the DUs where the STAs are located will have the sole authority to buy these STAs.

To help solve this dilemma, TransCo came up with a financing program so that technically and financially qualified ECs will be required to pay only 20 percent of the selling price upon the approval of the contract by the ERC.

The sale of TransCo’s sub-transmission assets involves 120 sale packages for 107 interested entities.

TransCo’s P8.8-billion worth of STAs nationwide cover 6,900 circuit kilometers of mostly 69-kV lines and 1,600 MVA of substation capacity.

As of December, last year, TransCo has sold P2.5 billion worth of STAs since the divestment program began in 2004. – Donnabelle Gatdula