Thursday, July 28, 2011

DMCI eyes fresh debt to fund power plant

Manila Times.net
Published : Thursday, July 28, 2011 00:00  Written by : R


DMCI Holdings Inc. on Wednesday said it plans to borrow money from various banks to partly finance the expansion of its coal-fired power plant in Batangas. 

On the sidelines of the company’s annual stockholders’ meeting, Isidro Consunji, DMCI Holdings president, told reporters that his company is in talks with banks to borrow $225 million to finance the 300-megawatt expansion of the Calaca coal-fired power plant.

The company plans to spend $450 million to finance the first half of the planned 600-megawatt expansion of the Calaca coal-fired power plant.

Consunji said DMCI intends to proceed with the additional 300-megawatt expansion “depending on demand.”

The 600-megawatt expansion, which will triple the Calaca facility’s capacity to 1,200 megawatts, will begin once the company finishes the $40-million rehabilitation of the plant in March or April next year. It will come on stream after 33 months.

Consunji also projected that the conglomerate’s net income would reach between P9 billion and P10 billion this year, excluding extraordinary gains.

He added that earnings of all its business units are projected to grow by 20 percent, except for its construction business.

For its mining business, Consunji said there is a “good chance” that Semirara Mining Corp. will exceed its projected net income of P5.6 billion after its net income hit P4.5 billion in the first half.

Coal production will reach 7 million tons, half of which will be exported. Overtime, its entire production would be sold locally to take advantage of higher coal prices in the country.

DMCI intends to partner with Pangilinan-led Metro Pacific Tollways Corp. should the latter win the bidding for toll road contracts under the PPP program. The Consunj-owned firm would act as the contractor of the project.

DMCI have already forged a partnership with the Pangilinan Group through Maynilad Services Inc.

DMCI has businesses in water utility, mining, power generation and real estate.

Its shares rose to P46.10 on Wednesday from P45.85 each on Tuesday.

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