Privatization
The Arroyo administration has been recently criticized for conducting nontransparent and biased bidding of the nations critical power grid operator by manipulating the bidding process. Petitions were filed to the supreme court by some bidders who were barred from bidding despite being qualified enough.
Opponents to TransCo's privatizations argue that TransCo should remain state-owned instead of selling it to private firms where it can be readily abused for profits. Ultimately, electricity consumers shall burden the electricity prize hike imposed by private power transmission firm monopoly.
On December 12, 2007, 2 consortia bid for a 25-year license to run the Philippine power grid - privatization of the management of the National Transmission Corporation (Transco): the consortium of Monte Oro Grid Resources Corp., led by businessman Enrique Razon, comprising the State Grid Corporation of China, and Calaca High Power Corp., WON in an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG Aurora BV and Malaysia’s TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."
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