XLA or SCF from Mass. to Burmuda Message Board

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Technology Stocks : XLA or SCF from Mass. to Burmuda

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To: D.Austin who started this subject	10/16/2002 9:56:16 AM
From: D.Austin	Read Replies (1) of 1116

garp.com October 15:Electricity Risk – Philippines Poised To Get $200-Million For Power Sector Restructuring The Philippine government can finally expect this quarter the release of the $200 million loans from the Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC), which form part of the third tranche of the Power Sector Restructuring Credit Facility and its co-financing component. This came about as President Gloria Macapagal Arroyo approved the Master Plan on the National Power Corporation’s (NPC) Privatization, which was earlier endorsed by the Joint Congressional Power Commission. “We already forwarded to the ADB the final form of the NPC privatization plan--the submission of the plan is a major condition in the release of the third tranche of the power sector reform loan,” said Edgardo del Fonso, president of the Power Sector Assets and Liabilities Management Corporation (PSALM). But the PSALM chief executive indicated that there might be some internal considerations that must be settled first by ADB and JBIC before the Philippine government can draw the loans. “Of course, we do not want to pre-empt ADB and JBIC on these internal conditions, but we are hopeful that the loans would be released soon,” del Fonso said. When the privatization of the state-run power monopoly was put forward, the ADB has agreed to extend $300 million to support the sector’s restructuring program. The credit facility also carried a co-financing from JBIC. The first tranche of $100 million of the ADB loan was released to NPC in 1998; while the second tranche of another $100 million was drawn December last year. The loan was extended from the Bank’s ordinary capital resources. It was agreed that the interest rate will be determined in accordance with the Bank’s pool-based variable lending rate system for US dollar loans. It will be repayable over 15 years, including a grace period of 3 years. The privatization of the NPC assets is to kick-off with the spinoff National Transmission Corporation (Transco) which will be offered to private sector investors on a concession arrangement. The generation companies (gencos), on the other hand, shall be sold upon the establishment and commercial operation of the Wholesale Electricity Spot Market. Based on PSALM’s estimates, the disposal of the NPC assets will rake in $5 billion worth of proceeds; aside from the expected influx of new investments in the power sector. The government is banking heavily on NPC privatization in its resolve to provide curatives on the country’s ballooning budget deficit.

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