Power Grid forays into Philippines

Transco is the sole transmission company in Philippines. The Philippines government is planning to privatise Transco. Its value is estimated at $3.5-$4.6 billion.

Power Grid Corporation plans to acquire the special purpose vehicle (SPV) being floated to take over and manage the assets of the Philippines National Transmission Corporation (Transco) for 25 years. While Citadel, one of the largest private holding companies in that country with interests in aviation services, freight management and logistics and telecommunications, will hold 90%, Power Grid will hold the remaining 10% in the SPV.

The Power Grid board has already approved the acquisition of the 10% equity stake in the SPV. Apart from the Citadel-Power Grid combine, Terna of Italy, State Grid of China, Tenega of Malaysia and SNC Lavlin of Canada are also in the fray, along with local partners, the report added.