In its notice to investors, PSALM stated that to qualify as a TransCo concessionaire, the corporation "must be established under Philippine laws… and at least 60 percent of its capital is owned by Filipino citizens or corporate entities."

Such requirement is in keeping with the provisions of the Philippine Constitution which limits to just 40 percent the ownership of foreign firms or entities in public utilities, such as that of TransCo.

For being the backbone of the country’s electrical system, the spinoff transmission firm has been declared as a "national asset" and is deemed to be a business of public interest.

PSALM, however, did not qualify if the Filipinization of the interested concessionaires shall come before they will join the bidding; or tapping a local partner can be complied with after winning the concession contract.

The re-bidding for Transco concession deal is expected after the Energy Regulatory Commission (ERC) sets out final authority on the company’s second regulatory reset; or the ruling which prescribes its wheeling charges for the periods from 2006 to 2010.

The ERC Order is expected next month.

Energy officials opined it was necessary to wait for the ERC ruling on TransCo’s rates because this will give investors insights on how revenue stream would flow in the future operations of the transmission company.

Aside from localizing the corporate vehicle of the winning concessionaire, PSALM also qualified that to comply with the provisions of the Electric Power Industry Reform Act, it "is looking for bidders who are financially and technically capable with proven domestic or international experience and expertise as an established and reliable transmission system operator."

It is also a requisite that the winning bidder shall have managed a transmission system of comparable capacity and coverage to that of the Philippine transmission network.

"PSALM will conduct an open, competitive bidding for the transmission facilities, which will include grid interconnections and ancillary services" the company has announced.

As proffered, the winning bidder shall be responsible for improving, expanding, operating and maintaining these assets and operating any related businesses.