NGCP vies for Metrobank’s grid assets

Manila Times.net
Published : Thursday, September 22, 2011 00:00 Written by : Euan Paulo C. Añonuevo


THE National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval of a plan to purchase power transmission assets held by the Metrobank group.
In a filing, NGCP sought the Energy Regulatory Commission’s go signal for the purchase of Cebu Energy Development Corp.’s (CEDC) transmission facilities worth P216.22 million.


“Given that [CEDC] lacks the necessary expertise, resources and capability to operate and maintain these assets in accordance with the standard and procedures under the Philippine Grid Code, if these assets remain under the control of [CEDC], the transmission system in Panay Island will continue to be at risk,” NGCP said.


NGCP operates and manages the grid under a 25-year concession agreement with the government. The company is controlled by a group of local investors led by Henry Sy Jr. and its technical partner State Grid of China Corp.


CEDC is the Metrobank Group’s power generating unit, and operates coal plants in the Visayas.


Among the assets NGCP plans to acquire are five 138-kiloVolt power circuit breakers and accessories worth P45.80 million; the Calung-Calung 138-kiloVolt double circuit transmission line valued at P86.12 million; a 40 megaVolt-ampere and 138-kiloVolt transformer at a cost of P29.41 million; four 138-kiloVolt power circuit breakers at Calung-Calung substation estimated at P40.50 million; and the lot of CEDC’s switchyard worth P14.36 million.


“[NGCP] respectfully moves for the issuance of a provisional approval authorizing [NGCP] to acquire the [CEDC] assets including the lot where the switchyard is constructed, upon payment to [CEDC] of the amount equivalent to [NGCP’s] valuation of the assets,” it said.