Published May 30, 2017, 10:00 PM By Myrna M.
Velasco
Power utility giant Manila Electric
Company (Meralco) is now at the process of firming up its second technical
services venture in Port Harcourt Electricity Distribution Company (PHED) in
Nigeria, according to company President and Chief Executive Officer Oscar S.
Reyes.
This will be its other offshore
investment target, with still another one in Indonesia – via its tie-up with
Japanese firm Densan System Co. Ltd. on provision of billing and payment
services.
The deal with the Japanese firm was
firmed up early this month – and that afforded Densan an equity acquisition of
5.0-percent in Meralco’s CIS Bayad Center Inc. for a transaction worth P228
million.
In a press briefing following the
firm’s annual stockholders meeting, Reyes also noted that the Nigerian
distribution firm has been offering Meralco to take an equity investment, but
they opted to confine just extending technical partnership services for the
time being.
“Following our performance and the
feedback other utilities have gotten, we had been invited by Port Harcourt
development distribution company to provide the same type of technical
partnership and service – basically advisory and support services,” he said.
Reyes added “in fact, they wanted
more extensive partnership arrangement,” but he qualified that there is no firm
equity take that is being considered as of latest discussion.
He qualified that the deal will be
finalized once the Port Harcourt power utility secures approval from its
regulatory authorities.
“At this point, it’s up in the air
because as I said, the regulatory process takes some time,” Reyes said, when
asked on the timeframe relating to the targeted signing of partnership
agreements.
Meralco notably had its first foray
in Nigeria on provision of technical services to Ibadan Electricity
Distribution Company plc. In that venture, the company was also dangled an
option for 5.0-percent equity take.
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