MPIC unit, Alsons seal power deal

By Lenie Lectura - November 29, 2017

https://businessmirror.com.ph/mpic-unit-alsons-seal-power-deal/

THE partnership between Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group and Global Business Power Corp. (GBP), an associate of Metro Pacific Investments Corp. (MPIC), has been finalized following the signing of a shareholders agreement this month.

Under the agreement, GBP, the leading power producer in the Visayas, will have a 50-percent stake in Alsons Thermal Energy Corp. (Atec)—the holding firm for ACR’s baseload coal-fired power-plant assets. In June an investment agreement between the two parties was signed, and the Philippine Competition Commission subsequently gave its approval to the partnership in September.

“We believe this partnership will greatly benefit power consumers, particularly in light of the planned interconnection of the Midanao and Visayas grids, which we greatly support,” ACR Chairman and President Tomas I. Alcantara said. “We look forward to bringing together the technical expertise and unique strengths of our two organizations in ensuring power security in the Southern Philippines.”

The synergy will be realized once interconnection of the grid makes it possible for power consumers in the Visayas to be supplied from Mindanao and vice versa. The partnership will also give ACR the opportunity to pursue other energy-based projects outside of the Atec umbrella, particularly its renewable power-generating plants in Mindanao and Western Visayas. It will also allow ACR to accelerate its foray and entry in other energy-related enterprises in southern Philippines, including the smaller islands with promising growth in power demand.

Atec owns a 75-percent stake in the 210-megawatt (MW) Sarangani Energy Corp. baseload coal-fired plant in Maasim, Sarangani province. ACR’s long-time Japanese partner Toyota Tsusho Corp. will still hold a 25-percent equity in Sarangani Energy. Atec will also assume ACR’s stake in San Ramon Power Inc. (SRPI), which is developing a 105-MW baseload coal-fired plant in Zamboanga City.

The Sarangani Energy plant’s first 105-MW section began operating in April 2016. The company’s second 105-MW section is currently undergoing construction and is slated to begin operating in 2019. When Sarangani Energy reaches its full 210-MW capacity in the first half of 2019, it will be servicing over 6 million people in key population centers of Mindanao, such as General Santos, Cagayan de Oro, Iligan and Butuan. The SRPI plant,which will provide baseload power to Zamboanga City and other nearby areas, is scheduled to commence commercial operations in 2021. ACR, likewise, operates three diesel plants in different parts of Mindanao to provide peaking and backup power. It is also entering the renewable sphere with its first 15-MW run-of-river hydro plant in Sarangani scheduled to begin construction this year.

ACR also operates three diesel plants with an aggregate capacity of 258 MW . Before the end of this year, ACR will begin construction of the P3.7-billion 15.1-MW run-of-river hydropower project at the Siguil River basin in Maasim, Sarangani province.

The Siguil hydro project, which marks ACR’s entry into renewable-energy business, is expected to begin commercial operations within the first of 2020 and will provide power to Sarangani province, General Santos City and key municipalities of South Cotabato.

By 2021 ACR will have around 588 MW of generating capacity, which is approximately 25 percent of Mindanao’s projected peak power demand for that year.