Meralco unit to invest P3.5 B for 2 power projects

By Danessa Rivera (The Philippine Star) | Updated December 28, 2017 - 12:00am
http://www.philstar.com/business/2017/12/28/1772301/meralco-unit-invest-p3.5-b-2-power-projects

MANILA, Philippines — The power generating unit of Manila Electric Co. (Meralco) has invested P3.5 billion for its two power projects currently under development, company officials said.

Meralco PowerGen Corp. (MGen) president and CEO Rogelio Singson said the company has poured in billions of pesos for the immediate construction of its two power projects in Quezon and Zambales once the Energy Regulatory Commission (ERC) grants their respective power supply agreements (PSA).

So far, MGen has spent P2.8 billion for the 2x300-megawatt (MW) circulating fluidized bed coal-fired power plant in Subic, Zambales under Redondo Peninsula Energy Inc. (RP Energy), MGen senior vice president Angelito Lantin said.

Meanwhile, Lantin said P700 million was already spent for the 2x600-MW ultra supercritical coal-fired power plant under wholly-owned subsidiary Atimonan One Energy Inc. (A1E).

Supply contracts of these two power projects are still hanging with the ERC.

In April 2016, Meralco signed a power supply deal with RP Energy for a 225-MW supply and with A1E for the plant’s full output once completed.

RP Energy is a consortium composed of MGen (47 percent), AboitizPower unit Therma Power Inc. (25 percent) and Taiwan Cogeneration International Corp. (25 percent).

RP Energy has signed a construction contract with local company Azul Torre Construction Inc. and supply contract with Korean firm Doosan Heavy Industries & Construction Co. Ltd. to build the power project.

On the other hand, A1E’s first 600-MW unit is expected to be completed by 2021. It has an estimated project cost of around P135 billion.

For the Atimonan project, MGen has signed a mandate letter for a loan of up to P107.5 billion from eight banks.

It is also tapping Irish firm ESB International, a wholly-owned firm by the Electricity Supply Board, Ireland, to become its operations and management partner for the Atimonan plant.

Under the deal, ESBI will also provide knowledge transfer to MGen in running the Atimonan plant.

MGen said it is also evaluating bids from three potential engineering, procurement and construction contractors and is scouting for prospective partners in the project.