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HOLDOUT
Japan Bank for International Cooperation, whose
agreement is necessary for the transfer of the debts and
assets of debt-ridden National Power Corporation to the
Power Sector Assets and Liabilities Management Corp.
(Psalm), faces a determined attempt of government to
obtain its all-important signature.
Finance
Secretary Margarito Teves told reporters they expect the
Japan bank to give its consent “within the year.”
Of the
three entities whose agreement is needed for such
transfer, Asian Development Bank and the World Bank have
already signed on for that phase of the privatization of
Napocor. It remains for the Japan bank to complete the
process.
The
three are the main sources of financing over the decades
for Napocor and hold a large part of its debts.
Government energy sources said it is necessary that
Napocor’s debts and assets be transferred to Psalm in
order to assure potential buyers of the Napocor that the
sale proceeds without a hitch.
World
Bank country director for the Philippines Joachim Von
Amsberg said their consent was an affirmation of the
World Bank’s “continued commitment to support the
Philippine power sector reform program and privatization
efforts.”
Should
government require it, he promised the bank will extend
assistance in facilitating the bidding for the TransCo
operation concession, “including such options as the
World Bank and the Multilateral Investment Guarantee
Agency risk-mitigation instruments and the International
Finance Corp.’s long-term financing to the winning
bidder.” |
