By Alena Mae S. Flores | Posted on Aug. 31, 2013 at 12:03am
Manila Electric Co. struck a deal with Electricity Generating Public Co. Ltd. of Thailand to build a new 460-megawatt coal-fired power plant in Quezon province that will help avert the power shortage in Luzon in the coming years.
Meralco PowerGen Corp., the power generation arm of Meralco, signed a joint development agreement with New Growth B.V., a subsidiary of Egco for the construction of the new 460 megawatt supercritical coal-fired power plant, as a part of the expansion of the Quezon power project.
“Under the JDA [joint development agreement], Meralco PowerGen will have a 51-percent stake in the project company inclusive of rights to assign up to 2 percent thereof to an approved assignee, with New Growth B.V. to hold the remaining 49 percent,” Meralco said in a disclosure to the stock exchange.
Meralco said the agreement was signed on Aug. 29, but the project cost had yet to be determined and would depend largely on the final design, specifications and other terms determined during the engineering, procurement and construction tender process.
Meralco earlier said its board approved the resolution authorizing Meralco PowerGen “to execute a joint development agreement and other related agreements with Egco for the new 460-MW super critical coal fired power plant of the Quezon power project.”
Meralco PowerGen general manager Aaron Domingo said the Quezon power expansion was a part of the company’s planned 2,700-megawatt power portfolio.
Egco has been negotiating with Meralco for a joint venture agreement for the planned expansion of the existing 460-MW coal-fired power plant in Quezon since last year. The Quezon Power plant supplies power to Meralco.
Egco now controls 98 percent of Quezon Power Philippines Ltd., the plant’s corporate vehicle, after acquiring an additional 45.875 percent from Intergen for $375 million. The remaining 2 percent is held by PMR Ltd.
The Quezon Power project commenced commercial operations in May 2000 and provides stable and reliable electricity to the Luzon grid under a 25-year power sales agreement with Meralco.
Records from the Energy Department showed Quezon Power was scheduled to award the engineering, procurement and construction contract for the expansion by September.
Egco is the first independent power producer in Thailand where it operates a total of 16 power plants with combined capacity of 4,444 MW. source
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