Tuesday, May 21, 2013

San Miguel earmarks $1.5 billion for power projects

Manila Times.net
Written by Madelaine B. Miraflor  Published on 21 May 2013

Diversified conglomerate San Miguel Corp., through its power unit SMC Global Power Holdings Inc., has earmarked $1.5 billion for its power projects in Bataan and Davao.

The combined capacities of these power projects are expected to reach 900 megawatts (MW) that are due for completion by 2015.

Ramon Ang, San Miguel president and chief operating officer, said in an interview with reporters that the company is pushing for the construction of a 300-MW coal plant in Davao and a 600-MW coal plant in Bataan.

“The Northern Luzon plant, let’s say 600 MW, that’s $1 billion. Davao, 300 MW, that’s about $500 million. And then we’re supposed to do more but off hand, we’re still evaluating that option,” he said.

“The Luzon plant should start operating middle of 2015, south plant in Mindanao should be running third quarter of 2015,” he added.

Ang said that the firm has enough cash to finance the $1.5-billion investment.

The San Miguel official further mentioned that the company is preparing for the initial public offering of SMC Global within this year, but did not disclose the exact date.

Ang said that the company is planning to offer 49 percent of the company to interested buyers, adding that there are a lot of prospective foreign and local buyers.

He said that the 49-percent stake that they plan to offer is more or less worth $500 million to $800 million.   source

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