Italian utility Terna, State Grid Corp of China and Malaysia's Tenaga Nasional have been shortlisted to bid for a franchise to run the Philippines national power transmission system, officials said Friday.

The Tenaga consortium also involves US venture capital firm Newbridge Asia, the Power Sector Assets and Liabilities Management Corp (PSALM) said in a statement.

PSALM, charged with managing privatization in the Philippines, will meet with the three consortiums on November 20 to discuss issues surrounding the 25-year concession, which will be auctioned off on December 20.

Terna Spa, State Grid Corp, Tenaga and Newbridge all have Filipino partners who hold a majority equity share to conform with Philippine law.

Financially healthy

The Philippine legislature passed a law in the 1990s to break up the loss-making state utility National Power Corp to ease the drain on state coffers in the form of subsidies.

Bidders for the transmission concession must have experience in operating and maintaining electricity transmission systems comparable to that of the Philippines, and a net asset value of US$500 million.

"Our financial criteria ensures that the technical partner, the pre-qualifying Filipino investor and foreign investor are all financially healthy," said PSALM president Nieves Osorio.