by Myrna Velasco May 17, 2016
The energy arm of San Miguel Corporation will be on extensive capital spending of US$4.2 billion for five new power projects of 2,100 megawatts capacity in Mindanao and Luzon grids.
In a briefing with reporters yesterday, San Miguel President Ramon S. Ang noted that the company will be putting up three additional power projects to underpin the development of three industrial estates in various parts of Mindanao.
That portion of their investment plan, he said, will command aggregate capital outlay of $1.8 billion.
The per-megawatt spending penciled in by the company is $2.0 million – which is generally the rule-of-thumb cost for coal-fired power projects.
“Per industrial estate, the requirement is around 400MW,” he said, although their proposed power plant development will be at 300MW in every area.
These would be on top of the 600MW Malita Davao coal-fired power plant that will partly feed its capacity to an embedded San Miguel-owned industrial estate being pioneered in that domain.
Ang is confident of “brisk economic growth” for Mindanao, especially with renewed confidence that is partly propelled by the election of a new president from Davao City.
“We want to create more job opportunities for the Filipino people, and at the same time, provide a site for investors wanting to locate in Mindanao,” he stressed.
The other two major greenfield power developments in San Miguel Energy Corporation’s (SMEC)blueprint will be sited in Luzon for total capacity of 1,200MW.
These are the 600MW Central Luzon Power Corporation project in Pagbilao, Quezon; and 600MW Mariveles Power Generation project in Bataan.
The two projects are expected advancing to development phases soon as these are already underpinned by power supply agreements (PSAs) recently signed with power utility giant Manila Electric Company.
SMEC is currently the country’s biggest power industry player – and these project expansions will further cement its stronghold in the deregulated electricity market.