Wednesday, December 13, 2017

TransCo firming up titles of land hosting transmission facilities




NATIONAL Transmission Corp. (TransCo) has sought the services of the Land Registration Authority (LRA) to secure legal title to all the real estate assets on which transmission facilities from Luzon to Mindanao are built, its president said.
“All [real estate] that we have expropriated, we will have them titled,” said Melvin A. Matibag, TransCo president and chief executive officer, adding that a formal signing was scheduled on Tuesday.
He said the move is aimed at giving the TransCo a “complete set of proof” that it owns the properties on which transmission lines, substations and towers are standing on, including the improvements made by the National Grid Corporation of the Philippines (NGCP).
TransCo is presenting itself as a potential third player in the telecommunications industry, making the right-of-way it has gained for transmission assets potentially valuable for firms it may seek to partner with.
NGCP looks after transmission assets spanning up 20,000 kilometers. In Mindanao alone, 7,000 transmission lines have been built, mostly towers, steel and wooden poles, and other support structures. The government owns the assets, which the privately owned company operates under a congressional franchise.
Mr. Matibag said the survey to be made by LRA will determine the properties that have been expropriated and paid for by the government, as well as those that remain to be expropriated, for which TransCo will decide on how they will be paid.
Asked about the value of the real estate, he said: “I’ve been hearing around P200 billion.”
He said no accurate valuation is available as titling of all the properties has not been done since grid operation was transferred to the private sector. He added that around 1,000 properties have been titled while at least 4,000 more need titling.
NGCP’s franchise stems from Republic Act 9136 in 2001 or the Electric Power Industry Reform Act of 2001 (EPIRA), which paved the way for the sale of government energy assets.
The law separated the various components of the sector, including power transmission, which was spun off to state agency TransCo ahead of its turnover to the private sector through concession.
Unlike in an outright sale, the concession agreement allowed the government to keep ownership of the transmission assets through TransCo. NGCP marked its official start of operation as electricity transmission service provider in 2009.
Mr. Matibag said TransCo has a yearly budget to justly compensate owners of land on which transmission lines are built. He said the company’s utilization of these funds has increased to 30% from 5% because more right-of-way disputes have been settled, paid or closed in court. — Victor V. Saulon

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