TransCo proceeds hit

The continuing divestments of subtransmission assets of the National Transmission Corporation (TransCo) have increased its proceeds to billion.

The company has reported that the asset disposal process already covered 131 sale contracts with 107 distribution utilities and electric cooperatives as purchasers.

TransCo has emphasized that such assets had been for a stretch of 5,900 circuit-kilometers of mostly 69-kilovolt transmission lines and 1,600 megavolt ampere (MVA) of substation capacity.

The sub-transmission assets (STAs) have been sub-categorized and placed under the charge of TransCo prior to the privatization of the country’s transmission facilities via a 25-year concession agreement.

The Electric Power Industry Reform Act (EPIRA) has mandated the divestments of the STAs to interested power utilities.

The law even provided for a flexible payment arrangement for the purchasers, primarily the electric cooperatives which were widely perceived to have leaner financial base.

TransCo has reported that as of April this year, it already firmed up 112 sale contracts with 80 distribution utilities and ECs.

Of the total, it noted that 51 contracts worth billion have already cornered the final go-signal of the Energy Regulatory Commission (ERC).