Investors still waiting for Transco bill
Business Week, December 12, 2003

By IRIS CECILIA C. GONZALES

Reporter

The country's bid to attract more foreign investors would get a . touch needed boost if Congress finally ap­proves the 50-year franchise applica­tion of the National Transmission Corp. (Transco).

Industrialist Raul T. Conception said this was the most pressing concern of investors iti the energy sector.

Transco is the' entity that will take over the transmission assets of state utility firm National' Power Corp. (Napocor), which is being privatized.

While Congress approved in 2001 the Electric Power Industry Reform Act (EPIRA), which paves the way for the privatization of Napocor, it has yet to approve Transco's franchise appli­cation.

The franchise bill remains pending at the Senate even alit already hurdled deliberations at the House of Repre­sentatives last June.

Mr. Conception, who as Chairman of Consumer and Oil Price Watch, has been closely monitoring the power in­dustry, said lawmakers cannot afford to delay the approval ofTransco's fran­chise bid.

"This should be done immediately by Congress," said Mr. Conception, also Chairman of Conception Indus­tries, one of the biggest electric appli­ance makers in the country.

He added that the Transco fran­chise bill is the most important mea­sure that remains pending at the legis­lature.

The 12'° Congress, which is cur­rently on a holiday break, will resume on Jan. l l for its third and final session. Its last session, however, will be cut short as Congress is scheduled to ad­journ in February instead of June be­cause of the elections in May.

Given this, Mr. Conception fears the bill could be shelved until the next Congress. "There is little time left [for Congress]," he said in Filipino.

But he said the business commu­nity has been waiting for the approval of the Transco franchise bill, noting it would make Napocor more attractive to private investors.

Among the business groups pushing for the approval of such a bill are the American Chamber of Commerce of the Philippines, Inc. (AmCham) and the Philippine Chamber of Commerce and Industry.

A proper franchise bill would ensure government of their proceeds from the sale of Napocor's transmission lines. It would also be able to attract long-term investors given the right franchise bill.

Investors, in turn, would be assured of profits with a long-term franchise of Napocor's transmission lines.

Earlier, the National Economic Development Authority projected raising as much as $2 billion from the sale of Napocor's transmission assets. But without a proper Transco bill, Socioeconomic Planning Sec. Romulo L. Neri had said, the government can only get about $1.5 billion.

AmCham, which was among main supporters of the Transco franchise bill has already criticized Congress for failing to act on the measure.

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