Friday, July 15, 2016

San Miguel offers to sell Limay plant



by VG Cabuag - July 14, 2016

CONGLOMERATE San Miguel Corp. on Thursday said it is selling a 49-percent stake of its coal-fired power plant in Limay, Bataan, to local cooperatives even before it starts to operate.
San Miguel President and CEO Ramon S. Ang said on the sidelines of the stockholders’ meeting of Top Frontier Investment Holdings Inc. said its circulating fluidized bed (CFB), or clean, coal-fired plant in Limay is now open for acquisition.
“We are now in talks with some cooperatives that buy electricity from us. We can no longer offer it [power plant] to any other person or entity. They [the cooperatives] are our priority,” Ang added.
“Yes, it is for acquisition,” Ang said, when asked whether the talks involve the acquisition of the plant itself, or only the supply of the electricity being produced by the power plant without going into details, such as the amount of consideration involved in the negotiation.
The power plant will generate a total of 900 megawatts, and is still under construction and on track to complete it’s first phase this year.
With the 49-percent sale, the company’s power arm SMC Global Power Corp. will remain the majority owner by holding the remaining 51-percent interest.
Ang earlier said the plant costs about  $2-million investment per megawatt as against the $1-million investment per megawatt for an ordinary coal plant.
Last May Ang announced his group’s plan to build two more power plants in Luzon and three in Mindanao, with an aggregate capacity of 1,200 MW for around $4.2 billion.
In Luzon SMC Global would build and operate four 150-MW CFB coal-fired plant in Pagbilao, Quezon. It will build another plant with the same specifications in Mariveles, Bataan.

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