Monday, September 9, 2013

PNOC unit to defer 2 coal power plants

Manila Standard Today
By Alena Mae S. Flores 
PNOC Exploration Corp., the oil and gas exploration unit of state-owned Philippine National Oil Co., said it may defer the development of two coal-fired power plants with a combined capacity of 200 megawatts, if it fails to find a joint venture partner.
“We’re trying to attract investors to join us, but it seems that under the new guidelines [of] the Neda [National Economic and Development Authority], it’s not that easy,” PNOC Exploration president Pedro Aquino told reporters over the weekend.
PNOC Exploration is seeking partners to develop two mine-mouth, coal-fired power plants in Isabela and Zamboanga Sibugay, with an estimated capacity of 100 MW each.
The company tapped The Lantau Group as transaction advisor for the two projects.
“When we made our performance negotiation agreement with GCGG [Governance Commission for Government Corporations], we told them that if this is the kind of environment you want us to operate, we will not be as competitive as we want to be,” Aquino said.
PNOC Exploration is required to conduct an international competitive bidding for  joint venture projects under the guidelines issued by Neda and Executive Order 423.
“On a stand alone, I don’t think we can do it. The window is at the end of the year. We will put this on hold [if we don’t find a partner],” Aquino said.
PNOC Exploration plans to maintain a minority stake in both projects if it found a partner.
The Isabela power plant is designed to tap lignite coal from PNOC Exploration’s  concession in the area, which has reserves estimated to be sufficient to power a 100-MW station.  source

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