(The Philippine Star) | Updated October 13, 2016 - 12:00am
MANILA, Philippines –
Manila Electric Co. (Meralco) is firming up its entry into hydropower sector
after it forged a partnership with Blue Energy Holdings and Management Corp., a
company owned by the Tiu family.
Meralco disclosed
yesterday it signed a joint venture (JV) agreement and shareholders’ agreement
with Blue Energy.
Under the JV deal, both
companies will put a JV company to pursue the development of hydroelectric
power projects.
Meanwhile, under the
shareholders’ agreement, Meralco will subscribe to 3.12 million shares of the
JV firm for a total consideration of P3.12 million.
“Said shares represent
50 percent minus one share of the authorized capital stock of the proposed (jv
company),” Meralco said.
Meralco and Blue
Energy’s partnership forms part of the JV between the power distributor and
Repower Energy Development Corp. (REDC) of the Tiu family signed last January.
The agreement calls for
the joint construction of mini-hydropower plants using run-of-river resources
for renewable and efficient energy production, marking Meralco’s foray into
mini-hydropower development.
REDC had said the
partnership will lead to a series of groundbreaking of mini-hydropower plants
this year in select regions.
REDC has over
100-megawatt (MW) of mini-hydropower projects clustered in Quezon, Camarines
Sur, Bukidnon, and other provinces under development with investments worth
$400 million.
In July 2015, Meralco
chairman Manuel V. Pangilinan bared plans of spinning off new unit for RE
investments, a separate entity from the group’s power generating unit Meralco
Powergen Corp. (MGen).
MGen is building a
portfolio of up to 3,000 MW of new power capacity, mainly from baseload power
plants, to address the growing energy demand in the country.
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