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SAN
Miguel Energy Corp. (SMEC) could be disqualified from
bidding for the 25-year concession of the National
Transmission Corp. (Transco) set today, December 12, for
alleged violations of the Electric Power Industry Reform
Act (Epira) ban on cross-ownership.
Sources who requested anonymity, alleged
that mother company San Miguel Corp. (SMC) units San
Miguel Mills Inc. in Batangas, SMC Bacolod and SMC
Packaging Inc. have been involved in power distribution
in their respective
areas.
Transco’s bidding rules prohibits
cross-ownership, saying that “power-generation companies
and distribution utilities, including their
subsidiaries, affiliates, stockholders and officials of
generation companies or distribution utilities, or
other entities engaged in generating and supplying
electricity specified by the ERC within the fourth civil
degree of consanguinity or affinity, are not allowed to
hold any direct or indirect interest in Transco or its
concessionaire.”
Transco
concessionaires’ stockholders and officials, and their
relatives within the fourth civil degree of
consanguinity or affinity, are also prohibited from
having any direct or indirect interest in any generation
company or distribution utility.
The
Power Sector Assets and Liabilities Management Corp.
(Psalm) earlier announced that it has prequalified Monte
Oro Grid Resources Corp. and partner State Grid Corp. of
China, Two Rivers Pacific Holdings Corp. and partner
Terna-Rete Electtrica Nazionale S.P.A., San Miguel
Energy Corp. and partner TPG Aurora BV, and Citadel
Holdings Inc. and partner Power Grid Corp. of India Ltd.
Psalm
affirmed its confidence that the much put-off bidding to
operate Transco will push through in the face of several
protests. “We are relying on the Epira that provides in
no uncertain terms that the implementation of the
Epira’s provisions can only be enjoined by an order from
the Supreme Court,” said Jose Ibazeta, Psalm president.
“Barring
such an order from the Supreme Court, given that all
preparations are in place, there is no reason to stop
the Transco bidding on December 12,” added Ibazeta.
The
Securities and Exchange Commission had already issued
separate legal opinions for each bidder, confirming each
meet the Filipino nationality requirement for the
operation of Transco.
“We are
hopeful that the confirmation from the SEC as to the
nationality of the bidders will put to rest all doubts
about their qualification. This is just more reason for
us to push through with the December 12 bidding,” said
Ibazeta. |
