by Myrna Velasco February 21, 2016
Transmission firm National Grid
Corporation of the Philippines (NGCP) has been invited by a government entity
to co-invest in an internet backbone using its fiber optic cables (FOC), but
without complying with the mandates of its concession agreement with the Power
Sector Assets and Liabilities Management Corporation, it is not going to
happen.
If the company will plunge into an added venture as a co-investor in the ‘internet-for-all-project’ of the Information and Communications Technology Office (ICTO), Section 8.03 of the Concession Agreement provides that “the Concessionaire (NGCP) shall not, without PSALM’s prior written consent, enter into any business other than the activities required and permitted under this Agreement or undertaken in connection with any other related business.”
Section 10.04 of their concession deal further states that: “the concessionaire shall maintain separate audited accounts for each related business, kept as if the Concessionaire carried on such related business as a separate company, so that such accounts separately identify the revenues, expenses, assets, liabilities and reserves reasonably attributable to each related business in the books of the Concessionaire.”
As defined, ‘related business’ shall refer to “any business which maximizes the utilization of the transmission assets.”
The ICTO of the Department of Science and Technology (DOST), in its project briefer, has clearly stated that it has been inviting NGCP to co-invest in an infrastructure build-up that shall enable the use of its fiber optic cable as internet backbone for the country.
The project will serve as an expansion of what the ICTO has already started as network for the country’s internet connectivity.
The agency further stipulated that it wants to engage NGCP for a partnership “on the upgrade on fiber infrastructure and equipment.”
The Energy Regulatory Commission (ERC) has facilitated the meeting between ICTO and the transmission firm-concessionaire to advance talks on this particular undertaking.
As further stated, NGCP is being tapped not only to co-invest in the information technology infrastructure but will also be involved in the operation and maintenance (O&M) of the project.
If the company will plunge into an added venture as a co-investor in the ‘internet-for-all-project’ of the Information and Communications Technology Office (ICTO), Section 8.03 of the Concession Agreement provides that “the Concessionaire (NGCP) shall not, without PSALM’s prior written consent, enter into any business other than the activities required and permitted under this Agreement or undertaken in connection with any other related business.”
Section 10.04 of their concession deal further states that: “the concessionaire shall maintain separate audited accounts for each related business, kept as if the Concessionaire carried on such related business as a separate company, so that such accounts separately identify the revenues, expenses, assets, liabilities and reserves reasonably attributable to each related business in the books of the Concessionaire.”
As defined, ‘related business’ shall refer to “any business which maximizes the utilization of the transmission assets.”
The ICTO of the Department of Science and Technology (DOST), in its project briefer, has clearly stated that it has been inviting NGCP to co-invest in an infrastructure build-up that shall enable the use of its fiber optic cable as internet backbone for the country.
The project will serve as an expansion of what the ICTO has already started as network for the country’s internet connectivity.
The agency further stipulated that it wants to engage NGCP for a partnership “on the upgrade on fiber infrastructure and equipment.”
The Energy Regulatory Commission (ERC) has facilitated the meeting between ICTO and the transmission firm-concessionaire to advance talks on this particular undertaking.
As further stated, NGCP is being tapped not only to co-invest in the information technology infrastructure but will also be involved in the operation and maintenance (O&M) of the project.
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