Batangas II Electric Cooperative, Inc. (BATELEC II) has approved the use of a competitive selection process (CSP) for the eventual selection of a private sector partner, establishing a governance framework before accepting or evaluating proposals.

In an official statement, the cooperative said its Board of Directors unanimously approved a resolution authorizing the conduct of public bidding or CSP as the framework for evaluating proposals for private sector participation (PSP) in its distribution utility business.

As part of the resolution, the board directed its Technical Working Group (TWG) to prepare the Terms of Reference (TOR) that will govern the bidding process.

According to BATELEC II, the CSP aims to promote transparency, fairness, competitiveness and equal opportunity among prospective proponents. 

The TWG was also instructed to finalize the TOR in accordance with Presidential Decree No. 269, as amended, National Electrification Administration (NEA) Board Resolution No. 88, Series of 2002, and other applicable laws and regulations.

The cooperative said the board intentionally approved the governance framework ahead of the TOR to ensure that the rules governing the process are established before any proposals are submitted and evaluated.

It added that any partnership involving cooperative assets, property, or its franchise will remain subject to approval by its Member-Consumer-Owners (MCOs) through a referendum whenever required by law.

The cooperative emphasized that the framework establishes policy guidelines, legal safeguards and evaluation procedures before any commercial negotiations or partner selection take place.

In July 2025, Manila Electric Co. (Meralco) disclosed that it had submitted technical and commercial proposals to the cooperative as early as August 2024. The country’s largest power distributor has said it is awaiting clarification from BATELEC II on the structure and timeline of the selection process.

Prime Electric Holdings, the Razon-led distribution utility operator, has also expressed interest in partnering with the cooperative, putting BATELEC II’s selection process under close watch across the power sector.

What are your thoughts on BATELEC II’s decision to adopt competitive bidding before selecting a private sector partner? Share your insights in the comments.

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