Wednesday, August 23, 2017

Davao Light, Daneco firm up offer to buy TransCo assets



August 23, 2017

DAVAO CITY — Power distributors Davao Light and Power Co. (Davao Light) and the Davao del Norte Electric Cooperative, Inc. (Daneco) have formalized their offer to buy the sub-transmission assets of National Transmission Corp. (TransCo) in Davao del Norte.
A notice from the Energy Regulatory Commission (ERC) indicates that it has scheduled a hearing on the purchase proposal worth about P4.705 million on Sept. 20 in Davao City. Officials of both distribution entities declined to comment on their proposal pending the hearing.
Davao Light and Daneco are offering to buy the Bingcungan-Madaum 69-kilovolt line and Bingcungan-Tagum 69-kilovolt line of TransCo.
The hearing, based on the ERC notice, will tackle compliance of requirements, including the presentation of facts for the sale.
TransCo and the Davao Light-Daneco partnership completed the contract for the sale on March 16, 2012, about four months after the start of negotiations.
The government transmission company initiated the sale after the ERC, on July 16, 2011, issued a resolution amending its rules on the sale of TransCo’s sub-transmission assets.
The partnership between Davao Light, a unit of Aboitiz Power Corp., and Daneco dates back to 2011.
The two utilities both serve the province of Davao del Norte, with Davao Light covering the towns of Carmen, Dujali and Sto. Tomas as well as Panabo City, while Daneco handles the rest of the municipalities and the neighboring province of Compostela Valley.  They jointly provide power to the Island Garden City of Samal. — Carmelito Q. Francisco

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