THE Energy Regulatory Commission (ERC) has assured the National Transmission Corp. (Transco) that it has lined up to approve the 10 pending subtransmission assets contract the latter sold to electric cooperatives.

Subtransmission assets include lines typically rated at 69-kilovolt and facilities directly connected to distribution utilities. All subtransmission divestment contracts become effective only upon the approval of the ERC.

“There are already three subtransmission asset contracts that have already been approved by the ERC, and there are 10 more contracts to be approved within the next six month,” Arthur N. Aguilar, Transco president, told reporters at the signing of its lease purchase agreement for its subtransmission assets to Davao Oriental Electric Cooperative (Doreco).

The Transco official said that 20 contracts of the 40 subtransmission asset sold to electric cooperatives have already been filed with the ERC, while the rest have yet to complete documentations. Hearings are also ongoing for eight other contracts which have been filed at the ERC, he added.

Aguilar also admitted that only 40 percent to 50 percent of the existing electric cooperatives are technically and financially qualified to acquire the subtransmission assets.

Aguilar said that overall Transco is expected to generate P4 billion from the sale of subtransmission assets, considering that only half of the total electric cooperatives are technically and financially qualified.

On Thursday, Transco also signed a P67.1-million lease purchase agreement with Doreco for the sale of Transco’s subtransmission assets comprising 57.18 circuit-kilometers of lines and 420 structures including the Manikling-San Isidro and Pintatagan-Mati 69-kilovolt lines and the Pintatagan Switching Facility. The agreement brought to P2.09 billion the total subtransmission asset sales since Transco’s divestment program began in 2004.

For his part, Gregory A. Dukil, Doreco general manager, said that they will be tapping funds from the National Electrification Administration to partially finance the 20-percent down payment of P13.41 million. He added that Doreco is also looking at securing financial assistance from the Development Bank of the Philippines and the Land Bank of the Philippines to finance the balance payable in 18 years.

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THE Energy Regulatory Commission (ERC) has assured the National Transmission Corp. (Transco) that it has lined up to approve the 10 pending subtransmission assets contract the latter sold to electric cooperatives.