By Alena Mae S. Flores

National Grid Corp. of the Philippines has committed to invest P10 billion annually in the next two to three years to improve the country?s transmission highway, a company official said yesterday.

National Grid president Walter Brown told reporters in a press briefing that the company would continue investments in projects that were not completed or started yet by National Transmission Corp. under a five-year plan costing $850 million.

TransCo has completed about half of the projects under its 2006 to 2010 transmission development plan. National Grid will assume the remaining projects, which need an investment of around $300 million. It will also have to invest in the upgrading of equipment and training of personnel to make them at par with those of State Grid Corp. of China, a part owner of National Grid.

?We need to invest P10 billion a year. In 2009 and 2010, we may need to invest more because there have been backlogs,? Brown said.

?In order to comply with its commitment, the government had the choice of either giving us the fund... [of] at least P7 billion for the remaining projects or even more,? Brown said.

He said the government could also deduct the investment cost from further payments of National Grid.

Brown said the company might also look at utilizing its fiber optic system as another source of revenue in the future.

?The franchise allows us to use the fiber optic system. We have had initial studies on it. It?s an opportunity that we will explore later, but now we?re concentrating on getting on board, improving the efficiency,? he added.

Congress awarded National Grid a 25-year franchise, which is renewable by another 25 years, to operate the country?s transmission facilities.

?The studies [on fiber optic] we?ve made have been very preliminary. There is a possibility that we might engage either directly or through a joint venture with another company. But these are options we still have to explore,? Brown said.

He said the company might consider listing its shares at the Philippine Stock Exchange in the long-term period.

?We may consider that in an appropriate time, but it is not being considered immediately. We?re really concentrating on stabilizing the operations, putting things, upgrading the capability of our people,? Brown said.

National Grid is a consortium made up of Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corp. of Hong Kong Ltd. It took over the operations of TransCo from the government yesterday.

The consortium won the concession contract in December 2007 after offering the highest bid of $3.95 billion.

Monte Oro Grid Corp. is a wholly-owned subsidiary of Monte Oro Resources & Energy Inc. It was incorporated on Aug. 29, 2006 to invest and hold interest in shares of stocks of companies engaged in infrastructure projects.