PSALM belies claims of irregularity in Transco prebidding

The Power Sector Assets and Liabilities Management Corp. on Monday said that there is nothing irregular or “foul" in the prebidding process for the 25 year concession of the National Transmission Corp. The government will be bidding out the concession on Dec. 12. “We know there was no foul play in the proceedings. The bidding procedures were clear, made known to all the prospective bidders, and applied equally to all of them. The procedures even give the bidders an opportunity to ask for a reconsideration of any decision on prequalification, to ensure that there is no abuse of discretion in PSALM’s evaluation of the bidders’ submissions," Jose Ibazeta, PSALM president said in a statement. Ibazeta is giving this reaction following allegations that the bidder La Costa Consortium was earlier disqualified in the prequalification for the bidding of Transco. “Based on news reports, a case is now pending in court questioning the prequalification proceedings. We are therefore bound by the sub judice rule not to comment on the merits of our position. It is regrettable that PSALM has been attacked in the media for a matter which has already been addressed to the courts. But no amount of public statements can change the fact that an entity which fails to comply with clear criteria must be disqualified," Ibazeta said. Opposition Senators Aquilino Pimentel III and Jamby Madrigal are questioning the legality of the prequalification process after saying that Ibazeta is a "boardroom ally" of Enrique Razon Jr. head of one of the four final groups that have been prequalified by PSALM. Ibazeta explained that at the prequalification stage, the bidders’ documents are evaluated by technical working groups, whose assessment is reevaluated by a review committee. The review committee then makes a recommendation to the PSALM Board, composed of the Secretaries of Finance, Energy, Trade and Industry, Budget Management and the National Economic and Development Authority. “Only those who passed the prequalification criteria were allowed to proceed with the bidding process. This is not favoring any party; this is merely complying with the strict requirements for the Transco operator as stated in the bidding procedures and the EPIRA. The PSALM Board makes the final decision; no single person dictates or controls the decision on prequalification," Ibazeta said. “We owe it to the Filipino people to ensure that whoever operates Transco has the financial ability to maintain and expand its facilities. PSALM’s record shows that it consistently conducted fair biddings; even losing bidders in previous proceedings will attest to that," he added. At least 21 investors group have expressed interest to join the Transco bidding however, PSALM said only four groups have made it and had been prequalified. Among the four investors groups that prequalified includes the consortium of Monte Oro Grid Resources Corp. and State Grid Corp. of China; the consortium of Two Rivers Pacific Holdings Corp. and Terna-Rete Electtrica Nazionale S.P.A.; San Miguel Energy Corp. and TPG Aurora B.V.; and the consortium of Citadel Holdings Inc. and Power Grid Corp. of India Ltd. - GMANews.TV