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SOUTHEAST Asia’s largest food and beverage firm San
Miguel Corp. (SMC) has approved the Power Sector Assets
& Liabilities Management Corp.’s (PSALM) plan to
evaluate the allegations raised by Two Rivers Pacific
Holdings Corp. relating to possible a violation of the
Electric Power Industry Reform Act (Epira).
On
Tuesday, Two Rivers, led by publicly traded Metro
Pacific Investments Corp. (MPIC), alleged that San
Miguel Energy Corp. will violate the cross-ownership
restriction mandated by the Epira should it win the
contract to operate the National Transmission Co.
(Transco) because affiliates like 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’ stock-holders 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.
In a
statement Wednesday, SMC senior vice president and chief
finance officer Ferdinand Constantino said none of the
mentioned subsidiary companies of SMC sell power to
third-party customers nor are these companies engaged in
the business of power distribution.
“The
generating units of SMC companies mentioned are used
only as standby generating sets to cater solely to the
needs of the individual companies’ manufacturing loads,”
he said, adding, “We welcome any initiative of PSALM to
perform an independent validation to confirm our
statements.”
San
Miguel Energy, with its partner TPG Aurora BV, and Two
Rivers were among the four groups prequalified by PSALM
to bid for Transco along with Monte Oro Grid Resources
Corp. and partner State Grid Corp. of China, and Citadel
Holdings Inc. and partner Power Grid Corp. of India Ltd.
However,
during the auction Wednesday, Two Rivers withdrew its
offer after partner Terna Rette Electtrica Nazionale
S.p.A. of Italy dropped from the consortium. Two Rivers
president and chief executive Jose Ma. K. Lim said the
withdrawal of Terna as technical partner and investor in
the consortium prevents them from bidding for the
Transco.
Only San
Miguel Energy and Monte Oro have submitted bids,
according to PSALM. |
