Wednesday, July 27, 2011

DMCI beefs up Calaca power facility

Philippine Daily Inquirer
DMCI Holdings Inc. will invest $450 million to beef up the capacity of its Calaca power complex by 300 megawatts.
By March or April next year, DMCI will have completed the $100-million rehabilitation and upgrade of its power facility in Calaca, Batangas, DMCI president Isidro Consunji told reporters after the company’s stockholders’ meeting Wednesday.
The original capacity of the Calaca facility, which DMCI acquired in 2009, was 600 MW.
Although the Calaca plants are operating at a little over half of their rated capacities, DMCI still expects its consolidated net profit to grow by 20 percent to between P9 and P10 billion this year, Consunji said.
The Calaca power facility has a potential capacity of 1,200 MW. The group has applied with the Philippine Economic Zone Authority to convert the Calaca plant into an economic zone and expand capacity by another 600 MW. But for now, only an initial 300-MW expansion is in the pipeline, Consunji said.
“We’re negotiating now with Chinese suppliers for the purchase of equipment for the power plant and we’re looking for funding,” Consunji said.
The DMCI president said half of the $450-million investment for the capacity expansion would be sourced from banks noting that many banks were very eager to lend to the company at a cheap interest rate.
Based on 2010 figures, infrastructure accounted for 43 percent of DMCI’s revenue, water (through DMCI’s 45 percent in Maynilad Water Services Inc.) contributed 23 percent, while construction accounted for 26 percent.
All these businesses are expected to grow this year and help jack up consolidated net profits by 20 percent, Consunji said.—Doris C. Dumlao

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