Business World Online
Posted on July 22, 2011 06:48:45 PM
SUBIC BAY FREEPORT - A Manila Electric Co. (Meralco) unit sealed a deal on Friday to take over the firm in charge of building a coal-fired power plant here.
Meralco subsidiary Meralco PowerGen Corp. will now take majority stake in Aboitiz Power Corp.'s Redondo Peninsula Energy which will build the 600-megawatt (MW) clean coal fired power plant at the freeport.
The power plant is estimated to cost around $1.2 billion and is expected to be finished by 2014.
Before this, Aboitiz Power through its wholly owned subsidiary Therma Power Inc., held a 50% stake, while the remaining 50% is held by Taiwan Cogeneration International Corp.
The new ownership structure was not immediately made known.
“The objective in partnering the project is to provide the most cost-efficient power to our franchise area,” Meralco chief Operating Officer Oscar S. Reyes said in a press briefing after signing ceremonies.
The power plant will consist of two 300-MW units. It will be funded through equity and domestic financing. Five banks, BPI, BDO, First Metro Investment Corp., Philippine National Bank, and Rizal Commercial Banking Corp. have expressed interest in financing the project.
Meralco PowerGen's parent firm, the distribution utility, has yet to be tapped to be the offtaker of the power expected to be put out by the plant, Aboitiz Power Chief Executive Erramon I. Aboitiz said.
Metro Pacific Investments Corp. (MPIC) is a key stakeholder in Meralco.
MPIC is the local arm of Hong Kong’s First Pacific Co. Ltd., which partly owns PLDT. Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld. -- ENJD
The power plant is estimated to cost around $1.2 billion and is expected to be finished by 2014.
Before this, Aboitiz Power through its wholly owned subsidiary Therma Power Inc., held a 50% stake, while the remaining 50% is held by Taiwan Cogeneration International Corp.
The new ownership structure was not immediately made known.
“The objective in partnering the project is to provide the most cost-efficient power to our franchise area,” Meralco chief Operating Officer Oscar S. Reyes said in a press briefing after signing ceremonies.
The power plant will consist of two 300-MW units. It will be funded through equity and domestic financing. Five banks, BPI, BDO, First Metro Investment Corp., Philippine National Bank, and Rizal Commercial Banking Corp. have expressed interest in financing the project.
Meralco PowerGen's parent firm, the distribution utility, has yet to be tapped to be the offtaker of the power expected to be put out by the plant, Aboitiz Power Chief Executive Erramon I. Aboitiz said.
Metro Pacific Investments Corp. (MPIC) is a key stakeholder in Meralco.
MPIC is the local arm of Hong Kong’s First Pacific Co. Ltd., which partly owns PLDT. Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld. -- ENJD
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