SEVERAL agreements for the sale of National Transmission Corp.’s (Transco)sub-transmission assets to (STAs) five electric cooperatives have finally been approved by the Energy Regulatory Commission (ERC) after a long delay.

Subtransmission assets refer to transmission lines typically rated at 69 kilovolts and facilities directly connected to distribution utilities.

In the resolutions posted in its web site, the ERC announced that it has approved the sale of Transco subtransmission assets to Misamis Oriental I Electric Cooperative Inc.; Tarlac II Electric Cooperative Inc.; Cotabato Electric Cooperative Inc.; VMC Rural Electric Service Cooperative Inc.; and South Cotabato II Electric Cooperative Inc.

The five contracts approved by the ERC amount to P418.21 million.

The Electric Power Industry Reform Act (Epira) has mandated that subtransmission assets will be operated and maintained by Transco until their disposal to financially and technically qualified distribution utilities.

Since it began selling in 2004, Transco has sold a total of P2.5 billion of its P8.8 billion worth of subtransmission assets nationwide covering 6,900 circuit-kilometers of mostly 69-kilovolt lines and 1,600 megavolt-ampere (MVA) of substation capacity.

In February this year Arthur N. Aguilar, Transco president, said the ERC directed Transco to divest its subtransmission assets to qualified distribution utilities and electric cooperatives at the shortest time possible in view of the mandate of the Epira.  

“Given the short time frame to divest of these assets, we have filed a motion for reconsideration with the ERC to give us further time to sell off our subtransmission lines,” Aguilar said.

Transco is currently having difficulty in finalizing deals with just any electric cooperative or distribution, admitted the Transco official, saying a distribution utility or electric cooperative should have the financial capability to own and maintain an asset.

Aguilar further added they have even entered into concessionary deals with some of the electric cooperative, providing and allowing them to settle their payment for such assets for 20 years.

Apart from acquiring the asset, Aguilar said the buyers of the STAs will have to have the manpower and budget to maintain.

Aguilar said the ERC has been broaching the idea of guiding Transco to further make it more concessionary not just in terms of payment terms, but also in terms of interest rates.

As of February, Aguilar said the ERC has only approved 10 of 42 contracts that Transco entered into with 42 technically and financially qualified distribution utilities nationwide for the sale of its subtransmission assets.  

The 10 approved contracts for the sale of Transco’s subtransmission assets include those with San Fernando Light and Power Electric Corp., Cabanatuan Electric Corp., Angeles Electric Corp., Tarlac Electric Inc., Negros Occidental Electric Cooperative, Bohol-1 Electric Cooperative, South Cotabato-1 Electric Coopectrative, Sultan Kudarat Electric Cooperative, Davao Light and Power Corp. and Misamis Oriental-2 Electric Cooperative.

EUROPEAN businessmen in the country are now actively helping local outsourcing and offshoring (O&O) firms land more contracts in Europe, as they believe the industry’s target of achieving a 10-percent share in global outsourcing revenues by 2010 will not be possible if the focus will remain solely in the US market.

DAVAO CITY—From stopping all further conversion of agriculture lands to monitoring the expenditures of the Department of Agriculture (DA) and the pork barrel of Congress representatives, a nongovernment group said the Arroyo administration must implement drastic policy measures to tide itself over  the rice crisis and preserve its hold on power.

THE Department of Agriculture (DA) has formally asked the Department of Finance (DOF) to remove tariffs on agricultural inputs to help farmers cope with the spiraling cost of inputs such as fertilizer.

THE auto industry posted a 10.3-percent sales growth in the first quarter of the year as the market continues to remain strong despite rising fuel and food prices that may affect the decision to buy vehicles.

THE World Bank (WB) is willing to extend financial support of as much as $850 million to $900 million to the Philippines every year, starting the bank’s 2008 fiscal year.

SEVERAL agreements for the sale of National Transmission Corp.’s (Transco)sub-transmission assets to (STAs) five electric cooperatives have finally been approved by the Energy Regulatory Commission (ERC) after a long delay.

APPARENTLY heeding the call of experts, the Department of Agriculture (DA) and the Department of Social Welfare and Development (DSWD) are now mapping areas where cheaper and subsidized rice should be sold.

ACCORDING to the National Statistical Coordination Board, a Filipino family of five needs a monthly income of P6,274 to stay out of poverty—that’s P206 daily or P75,288 annually. For Metro Manila, where the cost of living is higher, a family of five needs P282 a day or P102,830 a year to keep out poverty.