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ALTHOUGH
it earlier claimed that the Makati Regional Trial Court
(RTC) had dismissed the complaints of the disqualified
bidders of the National Transmission Corp. (Transco),
the Power Sector Assets and Liabilities Management Corp.
(PSALM) backtracked Tuesday, saying it erred in making
that announcement.
“Psalm’s
web site inaccurately stated that the complaint filed by
La Costa Development Corp. was dismissed by the
Regional
Trial Court of Makati City. However, only the prayer by
La Costa for the issuance of a writ of preliminary
injunction was denied by the Makati RTC,” PSALM said in
a statement posted on its web site.
The
complaint, PSALM added, remains pending with the court
for resolution of the main case.
It
apologized for any inconvenience caused by the erroneous
release.
A source
from PSALM, who requested anonymity said, that what
remains pending at the Makati RTC is the plea to reverse
the bidding process and other claims included in the
complaint, among others.
The
source quickly added they can proceed as provided in the
rules.
Only a
“legal order” can stop PSALM from proceeding with the
privatization process of Transco, said the source.
PSALM
earlier said the Makati RTC dismissed for lack of merit
the complaint filed by La Costa, demanding that Psalm be
enjoined from further proceeding with the bidding for
the concession to operate Transco.
About a
month earlier, the same RTC rejected La Costa’s prayer
for the court to issue a temporary restraining order to
stop the Transco bidding process.
The
dismissal of the complaint clears all existing obstacles
to the privatization of the Transco business.
The
consortium of La Costa and SNC Lavallin was disqualified
by Psalm at the prequalification stage in October 2007.
La Costa
alleged that Psalm disregarded the law and its own
bidding rules, and filed a case in court to stop the
bidding.
With
this development Psalm is set to declare the highest
bidder, the consortium of Monte Oro Grid Resources Corp.
(MOGRC), State Grid Corp. of China (SGCC) and Calaca
High Power Corp., as the winning bidder. It will issue a
Selection notice to the consortium and sign the direct
agreement which provides for a one-year period for MOGRC
to apply for and obtain a franchise from Congress to
operate Transco.
PSALM
said it will soon issue the selection notice to the
consortium MOGRC, Calaca Power Holdings Corp. and SGCC
for the concession contract on Transco.
The
consortium offered a bid price of $3.95 billion, while
the consortium of San Miguel Energy Corp.,
Netherlands-based TPG Aurora BV and Malaysia-based TNB
Prai Sdn Bhd offered $3.905 billion.
Psalm is
also set to duly execute the direct agreement with the
MOGRC consortium which provides, among other conditions,
that the consortium has one year to obtain a franchise
from Congress to operate Transco.
At the
hearings for the franchise application, Congress is
expected to further scrutinize the MOGRC consortium’s
qualifications to hold a franchise and to operate
Transco.
PSALM
president Jose C. Ibazeta earlier said the winning
bidder cannot obtain legal rights to operate Transco
without a franchise from Congress, as required by the
1987 Constitution of any operator of a public utility.
After
the verification and validation process, the direct
agreement, duly executed by PSALM, will be delivered to
Monte Oro Grid as the highest bidder.
The
direct agreement is part of the technical proposal
submitted and executed by the prequalified bidders,
which sets forth the conditions precedent to the award
of the concession and the execution and delivery of the
concession agreement and other final transaction
documents. |
