By: Amy R. Remo
Philippine Daily Inquirer
9:19 pm | Friday, September 30th, 2011
The Aquino administration has vowed to boost spending for energy and energy-related projects using the P80-billion Malampaya funds held by the national treasury.
In a briefing on Friday, Budget Secretary Florencio Abad admitted that the government had so far drawn only a little more than P4 billion to cover the subsidies extended to specific beneficiaries and programs.
The Malampaya funds have been used for the operations of state-run National Power Corp.’s Small Utilities Power Group (SPUG) and the government’s Pantawid Pasada program.
Napocor’s SPUG was tasked to provide electricity in off-grid and most remote areas in the country.
The Pantawid Pasada program provides cash to jeepney and tricycle drivers to help them cope with the rising prices of fuel.
The Malampaya funds were also used to help finance rural electrification projects and the government’s recent purchase of the Hamilton blue ship, which is being used to secure petroleum exploration areas in the country.
“Next year, we will program more aggressively energy-related projects using the Malampaya funds, ” Abad said.
At the sidelines of an economic briefing yesterday, Energy Secretary Jose Rene D. Almendras said the government had so far withdrawn only P500 million from the P8- billion budget meant for the Armed Forces of the Philippines to boost security forces within prospective and existing petroleum exploration areas in the country.
The P8-billion allocation, according to Almendras, will be used to fund the training of AFP personnel and the purchase of the necessary equipment, including radar systems, three blue water ships from the United States and helicopters.
The funds will also be used to prepare for rescue operations in case of accidents on the rig.
A number of oil rigs, Almendras earlier disclosed, were being serviced by Malaysian firms, which was “embarrassing.”
Industry groups earlier urged the government to use the Malampaya funds to help lower electricity prices in the country. The Philippine Independent Power Producers Association (Pippa) suggested using some $300 million of the royalties that the government earned from the Malampaya operations for this particular purpose.
Almendras admitted that based on existing policies, the Malampaya royalties were not meant to be used for the purpose of lowering power rates since it was earmarked for “energy sources.” However, he said he would still look into the proposal and study how this mechanism could be implemented.
Friday, September 30, 2011
AES to proceed with $1B Masinloc power plant expansion
By: Amy R. Remo
Philippine Daily Inquirer
12:22 am | Friday, September 30th, 2011
US-based power giant AES Corp. will push through with its $1-billion expansion plan to double the existing capacity of the 600-megawatt Masinloc coal-fired facility in Zambales, according to a company official.
At the sidelines of Powertrends 2011 Thursday, Andrew Horrocks of AES told reporters that the company is now in the process of getting an environmental compliance certificate (ECC) for the proposed power plant and expects to secure other permits by November this year.
Horrocks said the first phase of the project would involve the construction of the 300-MW coal plant, expected to be completed by 2015. The second phase of the project will see the remaining 300 MW going online by 2018, should there be a demand for additional power at that time.
“Should the market be there and the commercial position be there, then we believe that probably, as we study the market and the market grows further, the next addition will be another 300 MW that will require moving forward,” Horrocks said of the planned second phase of the project.
Through its acquisition of the Masinloc I facility from state-run National Power Corp. in 2008, AES became the largest foreign investor in the country’s power sector.
As a result of capital investment and operational improvements, AES increased Masinloc’s capacity to 630 MW from 450 MW, improved availability to 74 percent from 50 percent, and increased net production by 62 percent within two years.
AES is a Fortune 500 global power company with generation and distribution businesses in 30 countries. The company owns and manages $40 billion worth of assets. In 2009, its revenue reached $14 billion.
Philippine Daily Inquirer
12:22 am | Friday, September 30th, 2011
US-based power giant AES Corp. will push through with its $1-billion expansion plan to double the existing capacity of the 600-megawatt Masinloc coal-fired facility in Zambales, according to a company official.
At the sidelines of Powertrends 2011 Thursday, Andrew Horrocks of AES told reporters that the company is now in the process of getting an environmental compliance certificate (ECC) for the proposed power plant and expects to secure other permits by November this year.
Horrocks said the first phase of the project would involve the construction of the 300-MW coal plant, expected to be completed by 2015. The second phase of the project will see the remaining 300 MW going online by 2018, should there be a demand for additional power at that time.
“Should the market be there and the commercial position be there, then we believe that probably, as we study the market and the market grows further, the next addition will be another 300 MW that will require moving forward,” Horrocks said of the planned second phase of the project.
Through its acquisition of the Masinloc I facility from state-run National Power Corp. in 2008, AES became the largest foreign investor in the country’s power sector.
As a result of capital investment and operational improvements, AES increased Masinloc’s capacity to 630 MW from 450 MW, improved availability to 74 percent from 50 percent, and increased net production by 62 percent within two years.
AES is a Fortune 500 global power company with generation and distribution businesses in 30 countries. The company owns and manages $40 billion worth of assets. In 2009, its revenue reached $14 billion.
Household application for solar power pushed
By Donnabelle L. Gatdula (The Philippine Star) Updated September 30, 2011 12:00 AM
MANILA, Philippines - Solar power is the only renewable energy (RE) technology that would allow homeowners to become power producers, Philippine Solar Power Alliance (PSPA) spokesperson Tetchi Cruz-Capellan said.
Interviewed on the sidelines of the PowerTrends 2011 Conference, Capellan said there are a lot of advantages of solar energy that Filipino consumers are not aware of.
The PSPA official made this statement in response to claims that RE, including solar power, would lead to an increase in power rates.
She said by installing solar kit in rooftops, individuals are empowered to generate their own clean energy, thus allowing them to manage and eventually reduce their electricity bills.
Based on actual experience, solar energy gives homeowners as much as 25-percent savings from their electricity consumption. These savings expand further as the price of electricity goes up.
The National Renewable Energy Board (NREB) revealed that in the last 10 years, electricity rates rose given the rising cost of fossil fuel.
Solar technology is modular and solar panels can be installed in small sizes like one-kilowatt, three-kw, and 10-kw, depending on the space available in the roof. It is easy to install and maintain.
Capellan said if 10 percent of rooftops in Metro Manila install solar energy systems, small power producers like homeowners, business, factories and malls can help Manila Electric Co. (Meralco) manage its peak load. Solar produces energy from 8 a.m. to 4 p.m.
“The power supplied by solar during daytime allows it to add electricity when industrial and commercial establishments need power most,” she added.
Moreover, data from the Philippine Electricity Market Corp. (PEMC) show the high offers made by power generators when selling electricity in the daytime at wholesale electricity spot market. In February and September, the settlement price reached as much as P60 per kilowatt-hour (kwh) and P35 per kwh, respectively.
NREB revealed that once the feed-in tariff for solar is implemented, the zero-rated, priority dispatch policy in the RE Law automatically allows solar power to displace expensive electricity coming from diesel-fired power plants.
Based on simulation conducted by NREB, the infusion of 200-MW solar in WESM will moderate the bids of power generators and have a positive effect on electricity prices. Immediately, a P3 drop in price is expected with the entry of solar energy in the wholesale market.
Daytime is when electricity price is highest. Even with solar generation priced at P17.95 per kwh, Capellan explained, “it replaces the most expensive power sold during the day at WESM and cuts the bid in half.”
According to PSPA, scientific evidence provided by the University of Colorado reveals the country’s insolation and solar irradiation at 5.5kwh/m2 and 1700kwh/m2 per year, respectively. This places the Philippines second in the region. It means the country has the potential to tap the full power of the sun. The only challenge lies in utilizing the resource technically and economically.
Capellan noted there are 70 projects totaling 500 megawatt (MW) submitted to the Department of Energy (DOE) for solar service contracts. Each application offers technology and capital that will allow the Philippines to fully harness the power of sunlight.
MANILA, Philippines - Solar power is the only renewable energy (RE) technology that would allow homeowners to become power producers, Philippine Solar Power Alliance (PSPA) spokesperson Tetchi Cruz-Capellan said.
Interviewed on the sidelines of the PowerTrends 2011 Conference, Capellan said there are a lot of advantages of solar energy that Filipino consumers are not aware of.
The PSPA official made this statement in response to claims that RE, including solar power, would lead to an increase in power rates.
She said by installing solar kit in rooftops, individuals are empowered to generate their own clean energy, thus allowing them to manage and eventually reduce their electricity bills.
Based on actual experience, solar energy gives homeowners as much as 25-percent savings from their electricity consumption. These savings expand further as the price of electricity goes up.
The National Renewable Energy Board (NREB) revealed that in the last 10 years, electricity rates rose given the rising cost of fossil fuel.
Solar technology is modular and solar panels can be installed in small sizes like one-kilowatt, three-kw, and 10-kw, depending on the space available in the roof. It is easy to install and maintain.
Capellan said if 10 percent of rooftops in Metro Manila install solar energy systems, small power producers like homeowners, business, factories and malls can help Manila Electric Co. (Meralco) manage its peak load. Solar produces energy from 8 a.m. to 4 p.m.
“The power supplied by solar during daytime allows it to add electricity when industrial and commercial establishments need power most,” she added.
Moreover, data from the Philippine Electricity Market Corp. (PEMC) show the high offers made by power generators when selling electricity in the daytime at wholesale electricity spot market. In February and September, the settlement price reached as much as P60 per kilowatt-hour (kwh) and P35 per kwh, respectively.
NREB revealed that once the feed-in tariff for solar is implemented, the zero-rated, priority dispatch policy in the RE Law automatically allows solar power to displace expensive electricity coming from diesel-fired power plants.
Based on simulation conducted by NREB, the infusion of 200-MW solar in WESM will moderate the bids of power generators and have a positive effect on electricity prices. Immediately, a P3 drop in price is expected with the entry of solar energy in the wholesale market.
Daytime is when electricity price is highest. Even with solar generation priced at P17.95 per kwh, Capellan explained, “it replaces the most expensive power sold during the day at WESM and cuts the bid in half.”
According to PSPA, scientific evidence provided by the University of Colorado reveals the country’s insolation and solar irradiation at 5.5kwh/m2 and 1700kwh/m2 per year, respectively. This places the Philippines second in the region. It means the country has the potential to tap the full power of the sun. The only challenge lies in utilizing the resource technically and economically.
Capellan noted there are 70 projects totaling 500 megawatt (MW) submitted to the Department of Energy (DOE) for solar service contracts. Each application offers technology and capital that will allow the Philippines to fully harness the power of sunlight.
Paje favors long-term predictability for mining investors
By Marianne V. Go (The Philippine Star) Updated September 30, 2011 12:00 AM
MANILA, Philippines - Environment and Natural Resources Secretary Ramon Paje said yesterday that he is in favor of offering long-term predictability for investors in the mining sector, so long as it is “within the legal framework of the Philippines.”
Paje was reacting to a request by the South African mining group Gold Fields for a 50-year mining permit if it decides to go ahead with its planned acquisition of Lepanto Consolidated’s and Liberty Express Assets 60 percent stake in the Far Southeast Gold project.
However, the Mines and Geosciences Bureau (MGB) told Gold Fields that it can issue only a 28-year permit – the three remaining years of Lepanto’s MPSA (mineral processing and sharing agreement) plus a renewal of another 25.
It was learned that Gold Fields is asking for a fresh 50-year permit and the conversion of the existing MPSA into a financial technical assistance agreement (FTAA).
Paje said the Department of Environment and Natural Resources (DENR) is bound by the limitation provided by existing laws.
However, Paje pointed out that while the allowable mining tenure is limited to 25 years, renewable for another 25 years – for a total of 50 years, there has been instances of an extension.
For instance, Paje cited the case of Benguet Corp. which has been able to operate for more than 50 years now due to the revision of the Mining Law.
MGB Director Leo Jasareno explained that Benguet’s first permit was issued when the governing mining law was a Commonwealth Act.
Benguet was able to secure a new permit under Presidential Decree 463 just as its old permit was set to expire, and then got another permit under the Mining Act of 1995.
Paje acknowledged the need to provide predictability to long-term investors. “It is only fair to give the company confidence for long-term investments,” he said.
“Predictability in business, that is what the government is trying to do. There must be no uncertainty in business ,because if there is uncertainty they will not invest,” he added.
Paje said, Gold Fields should accept the remaining 28 years and see what can be done under the law to extend its permit in the future.
Paje said the Philippine government would “always follow what is fair and not dislodge an existing investor.”
MANILA, Philippines - Environment and Natural Resources Secretary Ramon Paje said yesterday that he is in favor of offering long-term predictability for investors in the mining sector, so long as it is “within the legal framework of the Philippines.”
Paje was reacting to a request by the South African mining group Gold Fields for a 50-year mining permit if it decides to go ahead with its planned acquisition of Lepanto Consolidated’s and Liberty Express Assets 60 percent stake in the Far Southeast Gold project.
However, the Mines and Geosciences Bureau (MGB) told Gold Fields that it can issue only a 28-year permit – the three remaining years of Lepanto’s MPSA (mineral processing and sharing agreement) plus a renewal of another 25.
It was learned that Gold Fields is asking for a fresh 50-year permit and the conversion of the existing MPSA into a financial technical assistance agreement (FTAA).
Paje said the Department of Environment and Natural Resources (DENR) is bound by the limitation provided by existing laws.
However, Paje pointed out that while the allowable mining tenure is limited to 25 years, renewable for another 25 years – for a total of 50 years, there has been instances of an extension.
For instance, Paje cited the case of Benguet Corp. which has been able to operate for more than 50 years now due to the revision of the Mining Law.
MGB Director Leo Jasareno explained that Benguet’s first permit was issued when the governing mining law was a Commonwealth Act.
Benguet was able to secure a new permit under Presidential Decree 463 just as its old permit was set to expire, and then got another permit under the Mining Act of 1995.
Paje acknowledged the need to provide predictability to long-term investors. “It is only fair to give the company confidence for long-term investments,” he said.
“Predictability in business, that is what the government is trying to do. There must be no uncertainty in business ,because if there is uncertainty they will not invest,” he added.
Paje said, Gold Fields should accept the remaining 28 years and see what can be done under the law to extend its permit in the future.
Paje said the Philippine government would “always follow what is fair and not dislodge an existing investor.”
UCPB approves loan for Davao electric cooperative
Manila Times.net
Published : Friday, September 30, 2011 00:00 Written by : Lailany P. Gomez
UNITED Coconut Planters Bank (UCPB) has approved a multimillion-peso loan to finance the expansion of Davao del Norte Electric Cooperative.
In a statement, UCPB said it provided Daneco with a P326-million term loan to finance the upgrade of the distributor’s facilities and enable it meet the growing demand for electricity in its service areas.
Daneco will use the loan to double the capacity of two of its 10 substations from 10 megavolt ampere to 20, and rehabilitate its power lines, transformers and other distribution facilities and equipment.
The upgrade will benefit 125,900 households, commercial and industrial establishments, as well as government offices and public utilities that get their electricity from Daneco.
Daneco is one of the biggest electric cooperatives in the country, serving 374 barangays in Davao del Norte, Tagum City, the Island Garden City of Samal and Compostella Valley.
According to UCPB, power use in these areas has been growing at an average of 8 percent a year on account of the rise in business activities and the increase in the number of households.
Samal has enjoyed a surge in investments in tourism-related infrastructures and in residential property developments.
The UCPB loan is guaranteed by the LGU Guarantee Corp. under its regular guarantee program and the Electric Cooperative-Partial Credit Guarantee Program.
LGUGC is a private company established by the Bankers Association of the Philippines, the Development Bank of the Philippines and the Asian Development Bank to provide guarantee cover for loans to local development projects.
It administers the EC-PCG, a special guarantee program put up by the World Bank with a $10-million grant to the national government to encourage commercial banks to support rural electrification by financing the expansion and rehabilitation of the distribution facilities of electric cooperatives.
Daneco is the third power cooperative in Mindanao to receive financing from UCPB. The two others are Surigao del Norte Electric Cooperative and Cotabato Electric Cooperative, which received loans amounting to P85 million and P25 million, respectively.
Published : Friday, September 30, 2011 00:00 Written by : Lailany P. Gomez
UNITED Coconut Planters Bank (UCPB) has approved a multimillion-peso loan to finance the expansion of Davao del Norte Electric Cooperative.
In a statement, UCPB said it provided Daneco with a P326-million term loan to finance the upgrade of the distributor’s facilities and enable it meet the growing demand for electricity in its service areas.
Daneco will use the loan to double the capacity of two of its 10 substations from 10 megavolt ampere to 20, and rehabilitate its power lines, transformers and other distribution facilities and equipment.
The upgrade will benefit 125,900 households, commercial and industrial establishments, as well as government offices and public utilities that get their electricity from Daneco.
Daneco is one of the biggest electric cooperatives in the country, serving 374 barangays in Davao del Norte, Tagum City, the Island Garden City of Samal and Compostella Valley.
According to UCPB, power use in these areas has been growing at an average of 8 percent a year on account of the rise in business activities and the increase in the number of households.
Samal has enjoyed a surge in investments in tourism-related infrastructures and in residential property developments.
The UCPB loan is guaranteed by the LGU Guarantee Corp. under its regular guarantee program and the Electric Cooperative-Partial Credit Guarantee Program.
LGUGC is a private company established by the Bankers Association of the Philippines, the Development Bank of the Philippines and the Asian Development Bank to provide guarantee cover for loans to local development projects.
It administers the EC-PCG, a special guarantee program put up by the World Bank with a $10-million grant to the national government to encourage commercial banks to support rural electrification by financing the expansion and rehabilitation of the distribution facilities of electric cooperatives.
Daneco is the third power cooperative in Mindanao to receive financing from UCPB. The two others are Surigao del Norte Electric Cooperative and Cotabato Electric Cooperative, which received loans amounting to P85 million and P25 million, respectively.
SMC Global Power cleared to hold IPO
Manila Times.net
Published : Friday, September 30, 2011 00:00 Written by : Krista Angela M. Montealegre
SMC Global Power Holdings Corp. obtained regulatory approval to conduct what could be the Philippines’ biggest initial public offering after announcing it will spend P90 billion until 2016 for green field projects.
In its amended registration statement filed at the Securities and Exchange Commission, the wholly owned unit of San Miguel Corp. said it intends to raise between P24.71 billion and P36.90 billion from an upsized public offering of 348 million to 519.75 million shares.
SMC Global Power would raise between P12.76 billion and P27.34 billion from a base offer of 290 million to 385 million primary and secondary shares.
This is on top of an upsize option of 58 million to 77 million primary and secondary shares, which will be sold to domestic investors, as well as an over allotment option of 43.50 million to 57.75 million secondary shares.
The IPO shares will be sold at a price of up to P71 apiece.
As the selling shareholder, SMC will dilute its ownership in SMC Global Power to 67 percent, assuming the base offer as well as the green shoe and upsize options are fully exercised.
SMC Global Power intends to use net proceeds of up to P19.20 billion from the primary offer to partially finance its expansion plans and for general corporate purposes.
The company will allot up to P13.50 billion until 2015 for two 150-megawatt power plants in Ternate, Cavite and a 150-megawatt power facility in Northern Leyte. Both will be operational in the first quarter of 2015.
The remaining P5.70 billion that will be spent until 2016 will be earmarked for the Bulacan and Davao projects, acquisition of other power generation projects such as the Naga Power Plant Complex and the Unified Leyte Geothermal Power Plant, as well as for general corporate purposes.
SMC Global Power estimates that its aggregate capital expenditure for the development of the four green field projects will reach P90.4 billion, inclusive of the P9.3 billion and P26.3-billion capex for its fiscal year 2011 and 2012.
The company said the balance required to pursue these projects will be funded by third-party debt as well as cash from operating activities. The final amount of the third-party debt will be determined at the time of financing.
SMC Global Power is also contemplating on additional installed capacity at the planned facility in Cavite and the acquisition of existing power generation companies.
The expansion program is in line with its plan to expand its portfolio by up to 3,000 megawatts of new capacity nationwide over the next 10 years, depending on the market demand.
SMC Global Power has a capacity of 2,545 megawatts from its coal-fired plant in Sual, Pangasinan; a natural gas facility in Ilijan, Batangas; and a hydroelectric power plant in San Roque, Pangasinan.
The company’s offering may be the biggest on record since SM Investments Corp. raised about P28.8 billion in 2005.
Published : Friday, September 30, 2011 00:00 Written by : Krista Angela M. Montealegre
SMC Global Power Holdings Corp. obtained regulatory approval to conduct what could be the Philippines’ biggest initial public offering after announcing it will spend P90 billion until 2016 for green field projects.
In its amended registration statement filed at the Securities and Exchange Commission, the wholly owned unit of San Miguel Corp. said it intends to raise between P24.71 billion and P36.90 billion from an upsized public offering of 348 million to 519.75 million shares.
SMC Global Power would raise between P12.76 billion and P27.34 billion from a base offer of 290 million to 385 million primary and secondary shares.
This is on top of an upsize option of 58 million to 77 million primary and secondary shares, which will be sold to domestic investors, as well as an over allotment option of 43.50 million to 57.75 million secondary shares.
The IPO shares will be sold at a price of up to P71 apiece.
As the selling shareholder, SMC will dilute its ownership in SMC Global Power to 67 percent, assuming the base offer as well as the green shoe and upsize options are fully exercised.
SMC Global Power intends to use net proceeds of up to P19.20 billion from the primary offer to partially finance its expansion plans and for general corporate purposes.
The company will allot up to P13.50 billion until 2015 for two 150-megawatt power plants in Ternate, Cavite and a 150-megawatt power facility in Northern Leyte. Both will be operational in the first quarter of 2015.
The remaining P5.70 billion that will be spent until 2016 will be earmarked for the Bulacan and Davao projects, acquisition of other power generation projects such as the Naga Power Plant Complex and the Unified Leyte Geothermal Power Plant, as well as for general corporate purposes.
SMC Global Power estimates that its aggregate capital expenditure for the development of the four green field projects will reach P90.4 billion, inclusive of the P9.3 billion and P26.3-billion capex for its fiscal year 2011 and 2012.
The company said the balance required to pursue these projects will be funded by third-party debt as well as cash from operating activities. The final amount of the third-party debt will be determined at the time of financing.
SMC Global Power is also contemplating on additional installed capacity at the planned facility in Cavite and the acquisition of existing power generation companies.
The expansion program is in line with its plan to expand its portfolio by up to 3,000 megawatts of new capacity nationwide over the next 10 years, depending on the market demand.
SMC Global Power has a capacity of 2,545 megawatts from its coal-fired plant in Sual, Pangasinan; a natural gas facility in Ilijan, Batangas; and a hydroelectric power plant in San Roque, Pangasinan.
The company’s offering may be the biggest on record since SM Investments Corp. raised about P28.8 billion in 2005.
SEC approves SMC Global Power IPO
By Zinnia B. Dela Peña (The Philippine Star) Updated September 30, 2011 12:00 AM
MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of SMC Global Power Holdings Corp., the energy arm of diversifying conglomerate San Miguel Corp., that will raise from P12.76 billion to P27.335 billion.
Based on its amended prospectus, SMC Global Power is planning to offer 290 million to 385 million shares at a price range of P44 to P71 each.
This was lower than the 300 million to 500 million shares originally planned to be offered to the public.
Proceeds from the maiden offering of shares will be used to develop greenfield power projects, acquire existing power generation capacities, and for general corporate purposes.
Standard Chartered Securities (Singapore) Pte. Ltd. is SMC Global Power’s sole financial adviser as well as joint bookrunner and international manager along with Goldman Sachs Pte. and UBS AG.
On the other hand, ATR KimEng Capital Partners Inc. and SB Capital Investment Corp. will serve as domestic lead underwriters.
The company is the advanced stages of planning two clean-coal greenfield power projects with a combined capacity of 450 megawatts and is considering additional greenfield power projects with an aggregate capacity of up to 3,000 MW over the next five to seven years.
SMC Global Power is also preparing to bid for selected government-owned power generation plants scheduled for privatization as asset sales.
The company is also pursuing the vertical integration of its power business by capitalizing on changes in the regulatory structure to expand its sales of power to a broader range of customers, including retail customers. As part of the reorganization of the power related-assets of San Miguel, SMC Global Power acquired a 100-percent interest in San Miguel Electric Corp. which is in the process of obtaining a retail electricity license from the Energy Regulatory Commission.
Once open access and retail competition are implemented in December, the electricity supplier license will allow SMC Global Power to enter into offtake agreements with customers with power requirements of at least one MW.
SMC Global Power is now one of the largest power firms in the country, holding a 17.5-percent market share of the power supply of the national grid and a 23.5-percent market share of the Luzon grid.
MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of SMC Global Power Holdings Corp., the energy arm of diversifying conglomerate San Miguel Corp., that will raise from P12.76 billion to P27.335 billion.
Based on its amended prospectus, SMC Global Power is planning to offer 290 million to 385 million shares at a price range of P44 to P71 each.
This was lower than the 300 million to 500 million shares originally planned to be offered to the public.
Proceeds from the maiden offering of shares will be used to develop greenfield power projects, acquire existing power generation capacities, and for general corporate purposes.
Standard Chartered Securities (Singapore) Pte. Ltd. is SMC Global Power’s sole financial adviser as well as joint bookrunner and international manager along with Goldman Sachs Pte. and UBS AG.
On the other hand, ATR KimEng Capital Partners Inc. and SB Capital Investment Corp. will serve as domestic lead underwriters.
The company is the advanced stages of planning two clean-coal greenfield power projects with a combined capacity of 450 megawatts and is considering additional greenfield power projects with an aggregate capacity of up to 3,000 MW over the next five to seven years.
SMC Global Power is also preparing to bid for selected government-owned power generation plants scheduled for privatization as asset sales.
The company is also pursuing the vertical integration of its power business by capitalizing on changes in the regulatory structure to expand its sales of power to a broader range of customers, including retail customers. As part of the reorganization of the power related-assets of San Miguel, SMC Global Power acquired a 100-percent interest in San Miguel Electric Corp. which is in the process of obtaining a retail electricity license from the Energy Regulatory Commission.
Once open access and retail competition are implemented in December, the electricity supplier license will allow SMC Global Power to enter into offtake agreements with customers with power requirements of at least one MW.
SMC Global Power is now one of the largest power firms in the country, holding a 17.5-percent market share of the power supply of the national grid and a 23.5-percent market share of the Luzon grid.
US-based AES keen on $1-B expansion of Masinloc plant
By Donnabelle L. Gatdula (The Philippine Star) Updated September 30, 2011 12:00 AM
MANILA, Philippines - US-based AES Corp. is keen on pushing through with the $1-billion expansion of its 600-megawatt (MW) Masinloc coal-fired power plant as it expects to conclude the bidding of the engineering, procurement and construction (EPC) contract in November, a top company official said.
On the sidelines of the Powertrends 2011 Conference, AES Philippines country manager Andrew Horrocks said they plan to double the capacity of Masinloc in the medium term.
The expansion project was a commitment made during the state visit of President Aquino in the US in October 2010.
Horrocks said they are still negotiating for an EPC contract for an initial 300 MW, which will be completed in 2015. The next phase would be another 300 MW seen to be completed in 2018.
But Horrocks pointed out that they would need to put up the first 300 MW and decide on the second phase if they would get enough buyers of the power output.
According to the AES official, they are also in the process of securing necessary permits for the initial phase of the expansion project.
“We are on expansion stage. We are not going through the process, getting ECC (environmental compliance certificate),” he said.
He said they expect to get the ECC permits within the next two months.
The AES executive said they do not expect any opposition on the project.
He said they may be tapping local and foreign financing institutions to fund the expansion project.
AES is a global company that provides affordable and sustainable energy in 29 countries worldwide through a 27,000-strong workforce.
MANILA, Philippines - US-based AES Corp. is keen on pushing through with the $1-billion expansion of its 600-megawatt (MW) Masinloc coal-fired power plant as it expects to conclude the bidding of the engineering, procurement and construction (EPC) contract in November, a top company official said.
On the sidelines of the Powertrends 2011 Conference, AES Philippines country manager Andrew Horrocks said they plan to double the capacity of Masinloc in the medium term.
The expansion project was a commitment made during the state visit of President Aquino in the US in October 2010.
Horrocks said they are still negotiating for an EPC contract for an initial 300 MW, which will be completed in 2015. The next phase would be another 300 MW seen to be completed in 2018.
But Horrocks pointed out that they would need to put up the first 300 MW and decide on the second phase if they would get enough buyers of the power output.
According to the AES official, they are also in the process of securing necessary permits for the initial phase of the expansion project.
“We are on expansion stage. We are not going through the process, getting ECC (environmental compliance certificate),” he said.
He said they expect to get the ECC permits within the next two months.
The AES executive said they do not expect any opposition on the project.
He said they may be tapping local and foreign financing institutions to fund the expansion project.
AES is a global company that provides affordable and sustainable energy in 29 countries worldwide through a 27,000-strong workforce.
Meralco, others not yet ready for open access
By Donnabelle L. Gatdula (The Philippine Star) Updated September 30, 2011 12:00 AM
MANILA, Philippines - The power industry is not yet ready for open access which the Energy Regulatory Commission (ERC) wants to implement by end of this year, a group of power utilities said.
In a joint letter to the ERC, power distributors led by Manila Electric Co. (Meralco) said they should be given more time to prepare for the open access scheme.
Meralco is joined by the Philippine Rural Electric Cooperatives Association Inc. and the Private Electric Power Operators Association Inc. in asking the ERC to extend the Dec. 26 deadline for the implementation of open access to a “more viable date.”
“We submit that the time required to promulgate the rules and to procure, design, deploy, test and commission the needed systems and infrastructure... will extend well beyond [Dec. 26],” they said.
The group said the time provided by the ERC to prepare for open access would not be enough for all the logistics, particularly the procurement of the system for the process.
“Our concern stems from the fact that the remaining time between now and [Dec. 26] will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems,” the utilities said.
Open access will allow consumers to choose their power suppliers, in contrast to the current practice of distribution utilities sourcing electricity on behalf of their customers.
The implementation of the scheme was anchored on the completion of the last remaining mandate under the Electric Power Industry Reform Act of 2001 (EPIRA), that of the privatization of at least 70 percent of government’s power plants and contracted output with independent power producers.
In a recent decision, the ERC confirmed that the government has met the privatization threshold and has scheduled the start of open access on Dec. 26, 2011.
The introduction of open access will be gradual, starting first with end-users with a 12-month average demand of at least one megawatt. The coverage will then be expanded over the succeeding years until it reaches the household level.
In their plea to the ERC, the power utilities said systems for accounting, billing and settlement of transactions under an open access environment would also need time to complete.
They argued that the procurement of such systems and accompanying infrastructure could take 12 to 15 months after regulations, protocols and standards are projected to have been finalized by the regulator before the year ends.
MANILA, Philippines - The power industry is not yet ready for open access which the Energy Regulatory Commission (ERC) wants to implement by end of this year, a group of power utilities said.
In a joint letter to the ERC, power distributors led by Manila Electric Co. (Meralco) said they should be given more time to prepare for the open access scheme.
Meralco is joined by the Philippine Rural Electric Cooperatives Association Inc. and the Private Electric Power Operators Association Inc. in asking the ERC to extend the Dec. 26 deadline for the implementation of open access to a “more viable date.”
“We submit that the time required to promulgate the rules and to procure, design, deploy, test and commission the needed systems and infrastructure... will extend well beyond [Dec. 26],” they said.
The group said the time provided by the ERC to prepare for open access would not be enough for all the logistics, particularly the procurement of the system for the process.
“Our concern stems from the fact that the remaining time between now and [Dec. 26] will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems,” the utilities said.
Open access will allow consumers to choose their power suppliers, in contrast to the current practice of distribution utilities sourcing electricity on behalf of their customers.
The implementation of the scheme was anchored on the completion of the last remaining mandate under the Electric Power Industry Reform Act of 2001 (EPIRA), that of the privatization of at least 70 percent of government’s power plants and contracted output with independent power producers.
In a recent decision, the ERC confirmed that the government has met the privatization threshold and has scheduled the start of open access on Dec. 26, 2011.
The introduction of open access will be gradual, starting first with end-users with a 12-month average demand of at least one megawatt. The coverage will then be expanded over the succeeding years until it reaches the household level.
In their plea to the ERC, the power utilities said systems for accounting, billing and settlement of transactions under an open access environment would also need time to complete.
They argued that the procurement of such systems and accompanying infrastructure could take 12 to 15 months after regulations, protocols and standards are projected to have been finalized by the regulator before the year ends.
Thursday, September 29, 2011
Priority Dispatch For Hydropower Plants
Almendras Declares ‘State Of Emergency’
Manila Bulletin
By MYRNA M. VELASCO
September 29, 2011, 11:07pm
MANILA, Philippines — Owing it to the immediate need to prevent further flooding in typhoon-stricken areas, Energy Secretary Rene D. Almendras has declared a “state of emergency” so the hydro power plants can be merited priority dispatch by system operator National Grid Corporation of the Philippines.
In a press conference, the energy chief noted that the move will be backed up with “a Circular to be issued by the Department of Energy.” The circular revolves on the declaration of emergency relating to the effect of typhoon Pedring in the power generation sector.
Basically, he stressed that the ‘emergency declaration policy’ has been hinged on ensuring that the hydro plants will be dispatched as ‘must-run’ and for them to be compensated based on average generation price index (GPI) formula which is being applied when there is market suspension in the Wholesale Electricity Spot Market.
Nevertheless, industry players noted that if the hydro plants would bid at “zero” in the WESM, they can be merited dispatch. The ‘state emergency declaration’ by the DoE is seen as a dangerous precedent as this will give license to other players to eventually “play around” with pricing rules in the market.
What the ‘emergency declaration’ entails for the consumers could be an added cost to be passed on in their bills, but the operator of the spot market assured that the power generators’ bid for adjusted settlement rates will have to be prudently scrutinized.
“There is a need to prioritize the dispatch of generation from the hydro plants to ensure that dams would be able to manage their water levels,” Almendras said; adding that “some of the (water levels) of the dams that we have are extremely high, with some of them just a meter or less than a meter away from spillage.”
He added “what we want to do is to make sure that we would be able to unload (water)… that the water level will come down a bit in anticipation of the rains that will be coming,” he said, in reference to the threats of two more typhoons (Quiel and Ramon) which are seen entering the country in the coming days.
Philippine Electricity Market Corporation (PEMC) president Melinda L. Ocampo explained that while the GPI formula might merit additional cost that must be sought by the hydro power generators, “their applications would still have to be verified if they really incurred extra costs” in running the hydro plants.
The technical consideration on this aspect, Almendras explained, would be that the massive flooding can be eased or prevented if the hydro plants would be utilizing water for electricity generation.
The energy secretary qualified though that there is “no crisis in power supply”; in fact the grid has been teeming with supply because of low demand. Nevertheless, he emphasized that restoration setbacks are happening, mostly due to technical considerations, especially for those in flooded areas or even the storm-tossed tree branches falling on the distribution lines of the Manila Electric Company.
Expansion slated for Masinloc plant
Business World Online
Posted on September 29, 2011 10:16:17 PM
AES PHILIPPINES Corp. is taking a staggered approach to the planned expansion of its Masinloc coal-fired power plant to feel out the market, a ranking official yesterday said.
The American firm wants to wait until the first phase of its planned expansion of the 660-MW Masinloc coal power plant in Zambales is finished before determining if the second phase will push through.
“We are permitted to expand Masinloc by 600 MW. The first 300 MW will be up by 2013,” AES Philippines Country Manager Andrew J. Horrocks told reporters in a chance interview.
Mr. Horrocks said the first 300-MW expansion in the power plant will cost $500 million and the company is currently negotiating for local and international project financing.
“However, we will only put up the next phase if it is feasible and there is a market for that capacity,” Mr. Horrocks said.
The company is still hurdling regulatory processes for environmental compliance certificates.
“We believe by November we should have those permits,” Mr. Horrocks said.
Afterwards, the firm will still have to negotiate with engineering contractors and complete “financial closure” as well, he added.
The planned expansion of Masinloc is one of the investments announced by President Benigno S.C. Aquino III after his first state visit to the United States.
The company is looking for potential off-takers to provide the additional power from its expansion.
“We are currently still looking for off-takers. We also need new contracts with our current off-takers if we want to sell the additional power to them,” said Mr. Horrocks.
AES won the bid to operate Masinloc in 2008 for $930 million, currently the biggest asset sale of the Philippines.
The firm was reported to have complained of its purchase back then when it still had to compete with state-run power plants that sold output at lower, subsidized rates according to leaked US Embassy cables.
Earlier, the Energy department said AES is facing opposition from groups against coal power. However, Mr. Horrocks said the company has good relations with the local community in Masinloc.
AES is also “open to any expansion that’s profitable and fits within our business program.” -- Emilia Narni J. David
Posted on September 29, 2011 10:16:17 PM
AES PHILIPPINES Corp. is taking a staggered approach to the planned expansion of its Masinloc coal-fired power plant to feel out the market, a ranking official yesterday said.
The American firm wants to wait until the first phase of its planned expansion of the 660-MW Masinloc coal power plant in Zambales is finished before determining if the second phase will push through.
“We are permitted to expand Masinloc by 600 MW. The first 300 MW will be up by 2013,” AES Philippines Country Manager Andrew J. Horrocks told reporters in a chance interview.
Mr. Horrocks said the first 300-MW expansion in the power plant will cost $500 million and the company is currently negotiating for local and international project financing.
“However, we will only put up the next phase if it is feasible and there is a market for that capacity,” Mr. Horrocks said.
The company is still hurdling regulatory processes for environmental compliance certificates.
“We believe by November we should have those permits,” Mr. Horrocks said.
Afterwards, the firm will still have to negotiate with engineering contractors and complete “financial closure” as well, he added.
The planned expansion of Masinloc is one of the investments announced by President Benigno S.C. Aquino III after his first state visit to the United States.
The company is looking for potential off-takers to provide the additional power from its expansion.
“We are currently still looking for off-takers. We also need new contracts with our current off-takers if we want to sell the additional power to them,” said Mr. Horrocks.
AES won the bid to operate Masinloc in 2008 for $930 million, currently the biggest asset sale of the Philippines.
The firm was reported to have complained of its purchase back then when it still had to compete with state-run power plants that sold output at lower, subsidized rates according to leaked US Embassy cables.
Earlier, the Energy department said AES is facing opposition from groups against coal power. However, Mr. Horrocks said the company has good relations with the local community in Masinloc.
AES is also “open to any expansion that’s profitable and fits within our business program.” -- Emilia Narni J. David
UCPB lends Daneco P326M
Business Mirror
THURSDAY, 29 SEPTEMBER 2011 20:09 JUN VALLECERA / REPORTER
THE United Coconut Planters Bank has extended a P326-million loan to the Davao del Norte Electric Cooperative or Daneco whose franchise area on Mindanao island is host to a number of fast-growing, mainly tourism-related enterprises with a strong appetite for power.
The loan represents the bank’s third such facility for the power sector and the largest thus far, the two earlier loans having the combined value of only P110 million or about a third the size of the Daneco transaction.
The 10-year loan will finance the upgrade of the power distributor’s facilities and double the capacity of two of its 10 substations from 10 mega volts (MVA) to 20 MVA and at the same time, rehabilitate its power lines, transformers and other distribution facilities and equipment.
Also, the upgrade will benefit the 125,900 households, commercial and industrial establishments, government offices and public utilities in Southern Mindanao that get their electricity from Daneco.
All this was made possible because the loan carries a guarantee from the Local Government Unit Guarantee Corp. or LGUGC, a privately-owned corporation established by the Bankers Association of the Philippines, the Development Bank of the Philippines and the Asian Development Bank which extends guarantee cover on loans for local development.
With the LGUGC cover in place, UCPB is reasonably given assurance the 10-year loan will be paid on the remote likelihood that Daneco is unable to service its outstanding obligations.
The UCPB loan formed part of LGUGC’s regular guarantee program.
The LGUGC also administers the Electric Cooperative-Partial Credit Guarantee (EC-PCG) program which is a special program put up by the World Bank meant to encourage the large commercial banks to support rural electrification by financing the expansion and rehabilitation of the distribution facilities of electric cooperatives.
The World Bank extended the government of the Philippines a grant worth $10 million for this purpose.
Daneco is one of the biggest electric cooperatives in the country; it distributes electricity to 374 barangays in Davao del Norte, Tagum City, the Island Garden City of Samal and Compostella Valley.
Power usage in these areas has been growing at an average of eight percent a year on account of the rise in business activities and the increase in the number of households there.
In particular, the Island Garden City of Samal, with its many fine white-sand beaches, Dugong sanctuary and numerous other natural attractions, has been experiencing a surge in investments in tourism-related infrastructures and in residential property developments.
Davao del Norte and Compostella Valley are the Philippines’ leading producers of banana, a major export crop that generated $250 million in foreign-exchange earnings for the country last year. The former is also one of Mindanao’s main rice granaries.
THURSDAY, 29 SEPTEMBER 2011 20:09 JUN VALLECERA / REPORTER
THE United Coconut Planters Bank has extended a P326-million loan to the Davao del Norte Electric Cooperative or Daneco whose franchise area on Mindanao island is host to a number of fast-growing, mainly tourism-related enterprises with a strong appetite for power.
The loan represents the bank’s third such facility for the power sector and the largest thus far, the two earlier loans having the combined value of only P110 million or about a third the size of the Daneco transaction.
The 10-year loan will finance the upgrade of the power distributor’s facilities and double the capacity of two of its 10 substations from 10 mega volts (MVA) to 20 MVA and at the same time, rehabilitate its power lines, transformers and other distribution facilities and equipment.
Also, the upgrade will benefit the 125,900 households, commercial and industrial establishments, government offices and public utilities in Southern Mindanao that get their electricity from Daneco.
All this was made possible because the loan carries a guarantee from the Local Government Unit Guarantee Corp. or LGUGC, a privately-owned corporation established by the Bankers Association of the Philippines, the Development Bank of the Philippines and the Asian Development Bank which extends guarantee cover on loans for local development.
With the LGUGC cover in place, UCPB is reasonably given assurance the 10-year loan will be paid on the remote likelihood that Daneco is unable to service its outstanding obligations.
The UCPB loan formed part of LGUGC’s regular guarantee program.
The LGUGC also administers the Electric Cooperative-Partial Credit Guarantee (EC-PCG) program which is a special program put up by the World Bank meant to encourage the large commercial banks to support rural electrification by financing the expansion and rehabilitation of the distribution facilities of electric cooperatives.
The World Bank extended the government of the Philippines a grant worth $10 million for this purpose.
Daneco is one of the biggest electric cooperatives in the country; it distributes electricity to 374 barangays in Davao del Norte, Tagum City, the Island Garden City of Samal and Compostella Valley.
Power usage in these areas has been growing at an average of eight percent a year on account of the rise in business activities and the increase in the number of households there.
In particular, the Island Garden City of Samal, with its many fine white-sand beaches, Dugong sanctuary and numerous other natural attractions, has been experiencing a surge in investments in tourism-related infrastructures and in residential property developments.
Davao del Norte and Compostella Valley are the Philippines’ leading producers of banana, a major export crop that generated $250 million in foreign-exchange earnings for the country last year. The former is also one of Mindanao’s main rice granaries.
AES looks at expanding Masinloc plant capacity
Business Mirror
THURSDAY, 29 SEPTEMBER 2011 20:06 PAUL ANTHONY A. ISLA / REPORTER
AES Philippines, the local unit of US-based AES Corp., is looking at initially adding 300 megawatts (MW) to the existing 600-MW capacity of Masinloc coal-fired power plant in Zambales, said country chairman Andrew Horrocks on Thursday.
In an interview, Horrocks said the company is currently working at securing the required permits such as environmental compliance certificates.
“We believe we should have these permits by November. [The company does not foresee any problem as] we have very good relations with our local community,” he pointed out.
Horrocks added that start of constructions works will depend on the negotiations with contractors as well as the financial closure, even if the permits are issued next month.
The company is scouting for either local or international financial institutions to help finance the said expansion project.
Horrocks said the amount will depend on the company’s negotiations with the banks. “But for the first additional 300MW, [construction of] the project is estimated to cost roughly $500 million.”
He added that: “We’re actually planning to expand by another 600MW. But our view is we would have 300MW toward the end of 2015, if everything comes together. If it’s feasible, we’ll add another 300MW by 2018. It all depends on having the right contracts,” Horrocks said.
He also noted the company is open to investing in the country “for as long as it is profitable and fit within the business program in the country.”
In October last year, AES said it will invest around $800 million to expand the Masinloc coal-fired power plant.
AES president and chief executive Paul Hanrahan then met with President Aquino and Almendras discussed the plan to double the size of the Masinloc facility.
“Our Masinloc facility was built in a way that included much of the critical infrastructure for the expansion unit, allowing us to provide one of the lowest cost alternatives for capacity expansion,” he said.
In April 2008, AES took over the operations of the Masinloc plant for $930 million.
THURSDAY, 29 SEPTEMBER 2011 20:06 PAUL ANTHONY A. ISLA / REPORTER
AES Philippines, the local unit of US-based AES Corp., is looking at initially adding 300 megawatts (MW) to the existing 600-MW capacity of Masinloc coal-fired power plant in Zambales, said country chairman Andrew Horrocks on Thursday.
In an interview, Horrocks said the company is currently working at securing the required permits such as environmental compliance certificates.
“We believe we should have these permits by November. [The company does not foresee any problem as] we have very good relations with our local community,” he pointed out.
Horrocks added that start of constructions works will depend on the negotiations with contractors as well as the financial closure, even if the permits are issued next month.
The company is scouting for either local or international financial institutions to help finance the said expansion project.
Horrocks said the amount will depend on the company’s negotiations with the banks. “But for the first additional 300MW, [construction of] the project is estimated to cost roughly $500 million.”
He added that: “We’re actually planning to expand by another 600MW. But our view is we would have 300MW toward the end of 2015, if everything comes together. If it’s feasible, we’ll add another 300MW by 2018. It all depends on having the right contracts,” Horrocks said.
He also noted the company is open to investing in the country “for as long as it is profitable and fit within the business program in the country.”
In October last year, AES said it will invest around $800 million to expand the Masinloc coal-fired power plant.
AES president and chief executive Paul Hanrahan then met with President Aquino and Almendras discussed the plan to double the size of the Masinloc facility.
“Our Masinloc facility was built in a way that included much of the critical infrastructure for the expansion unit, allowing us to provide one of the lowest cost alternatives for capacity expansion,” he said.
In April 2008, AES took over the operations of the Masinloc plant for $930 million.
Pagbilao expansion sealed
Manila Standard Today
by Alena Mae S. Flores
Aboitiz Power Corp. and Marubeni Corp. of Japan will jointly invest $600 million to $700 million to build a 400-megawatt power plant beside the existing 700-MW Pagbilao coal-fired station in Quezon province.
Aboitiz Power and Marubeni signed the agreement in Tokyo Tuesday after President Benigno Aquino III visited Japan.
Marubeni is part owner of TeaM Energy, which owns and operates the Pagbilao plant under a build-and-operate contract with National Power Corp.
TeaM Energy is composed of Marubeni and Tokyo Electric Power Co. Team Energy also owns and operates the 1,200-MW Sual coal plant in Pangasinan.
Energy Secretary Jose Rene Almendras confirmed the signing of the deal, adding that Marubeni was also looking at expanding the Sual coal-fired power plant.
“Discussions are going on... They are discussing the possibility of increasing the expansion, they might increase it up to 600 MW [for both Pagbilao and Sual],” he said.
Almendras said Ramon Ang, president of San Miguel Corp., which acts as administrator of the Sual plant, was also in Japan during the President’s visit.
Therma Luzon Inc., a unit of Aboitiz Power, handles the fuel procurement and sale of the electricity output as administrator of the Pagbilao power plant.
The new power plant in Pagbilao will also run on clean coal generation technology using the circulating fluidized bed system to produce power with considerably less adverse effects to the environment.
Signatories of the memorandum of agreement were Aboitiz Power president and chief executive Erramon Aboitiz, and Marubeni executive managing director and board member Shigeru Yamazoe.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station. This is part of our overall goal of providing power solutions that are competitively priced,” Aboitiz said. “We expect to complete the power plant within 2015.”
by Alena Mae S. Flores
Aboitiz Power Corp. and Marubeni Corp. of Japan will jointly invest $600 million to $700 million to build a 400-megawatt power plant beside the existing 700-MW Pagbilao coal-fired station in Quezon province.
Aboitiz Power and Marubeni signed the agreement in Tokyo Tuesday after President Benigno Aquino III visited Japan.
Marubeni is part owner of TeaM Energy, which owns and operates the Pagbilao plant under a build-and-operate contract with National Power Corp.
TeaM Energy is composed of Marubeni and Tokyo Electric Power Co. Team Energy also owns and operates the 1,200-MW Sual coal plant in Pangasinan.
Energy Secretary Jose Rene Almendras confirmed the signing of the deal, adding that Marubeni was also looking at expanding the Sual coal-fired power plant.
“Discussions are going on... They are discussing the possibility of increasing the expansion, they might increase it up to 600 MW [for both Pagbilao and Sual],” he said.
Almendras said Ramon Ang, president of San Miguel Corp., which acts as administrator of the Sual plant, was also in Japan during the President’s visit.
Therma Luzon Inc., a unit of Aboitiz Power, handles the fuel procurement and sale of the electricity output as administrator of the Pagbilao power plant.
The new power plant in Pagbilao will also run on clean coal generation technology using the circulating fluidized bed system to produce power with considerably less adverse effects to the environment.
Signatories of the memorandum of agreement were Aboitiz Power president and chief executive Erramon Aboitiz, and Marubeni executive managing director and board member Shigeru Yamazoe.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station. This is part of our overall goal of providing power solutions that are competitively priced,” Aboitiz said. “We expect to complete the power plant within 2015.”
Excess water in dams to be used for power
Business World Online
Posted on September 29, 2011 12:20:23 AM
A MARKET emergency has been declared by the Energy department to allow the use of storm-brought excess water for power generation.
“[W[e have determined that there are a number of dam reservoirs with water elevation levels reaching their limit and there’s a need to reduce the water levels in anticipation of another typhoon,” Energy Secretary Jose Rene D. Almendras told reporters yesterday.
“It would be a waste to release the water in the dams without using it. So what we’re doing is we’re declaring a market emergency, thereby allowing the National Grid Corporation of the Philippines and Wholesale Electricity Spot Market (WESM) to automatically dispatch a hydropower facility that would want to offer its power to market,” he added.
The declaration allows the government to intervene in the WESM, which normally allows market forces to determine what type of power will be dispatched.
Several reservoirs are close to the spilling level due to the heavy rains from typhoon Pedring which battered Luzon on Tuesday.
The release of water has been blamed for exacerbating floods but the Energy department said only one dam, Angat, had done so.
The market emergency will only last until Friday “but if there is another storm I might have to declare it again,” Mr. Almendras said. -- ENJD
Posted on September 29, 2011 12:20:23 AM
A MARKET emergency has been declared by the Energy department to allow the use of storm-brought excess water for power generation.
“[W[e have determined that there are a number of dam reservoirs with water elevation levels reaching their limit and there’s a need to reduce the water levels in anticipation of another typhoon,” Energy Secretary Jose Rene D. Almendras told reporters yesterday.
“It would be a waste to release the water in the dams without using it. So what we’re doing is we’re declaring a market emergency, thereby allowing the National Grid Corporation of the Philippines and Wholesale Electricity Spot Market (WESM) to automatically dispatch a hydropower facility that would want to offer its power to market,” he added.
The declaration allows the government to intervene in the WESM, which normally allows market forces to determine what type of power will be dispatched.
Several reservoirs are close to the spilling level due to the heavy rains from typhoon Pedring which battered Luzon on Tuesday.
The release of water has been blamed for exacerbating floods but the Energy department said only one dam, Angat, had done so.
The market emergency will only last until Friday “but if there is another storm I might have to declare it again,” Mr. Almendras said. -- ENJD
PetroEnergy inks P2.4-billion loan for power project
By Donnabelle L. Gatdula (The Philippine Star) Updated September 29, 2011 12:00 AM
MANILA, Philippines - PetroEnergy Resources Corp. has signed a P2.4-billion long-term loan facility to finance a power project by subsidiary Maibarara Geothermal Inc. (MGI).
In its disclosure to the Philippine Stock Exchange, PetroEnergy said the loan will specifically be used for the construction of the 20-megawatt Maibarara geothermal power project, the first renewable energy project under the 2008 Renewable Energy (RE) Law.
MGI is 65 percent owned by PetroEnergy’s PetroGreen Energy Corp., 25 percent by Trans-Asia Oil and 10 percent by PNOC-Renewables Corp.
MGI holds the Department of Energy (DOE) service contract for the Maibarara geothermal field in Sto. Tomas, Batangas.
The 10-year loan would be provided by Rizal Commercial Banking Corp. (RCBC) and Bank of the Philippine Islands (BPI). RCBC Capital is loan issue manager and lead arranger, BPI Capital is joint lead arranger, and RCBC Trust is loan facility agent, security trustee, and accounts trustee.
The loan will be used to fund the construction of the steamfield pipeline system, the power plant, and related transmission connection.
The 20-MW geothermal facility is intended to be put into commercial operation by late 2013.
“The 20-MW Maibarara geothermal project holds the distinction of being the first renewable energy project fully initiated under the 2008 Renewable Energy Law and the first geothermal service contract awarded during the 2009 DOE bidding round to reach this milestone of financial closing,” Energy Undersecretary Jay Layug said.
He also said the participation of two of the country’s top commercial banks testifies not only to the public-private partnership nature of the Maibarara geothermal power project but also to the investment and growth potential of the country’s RE industry.
“MGI is proud to have RCBC and BPI as part of its growing network of partners in the Maibarara geothermal power project,” MGI president Francisco G. Delfin Jr. said, adding that the loan demonstrates lenders’ belief in the commercial viability of the project as well as their regard for MGI’s technical, managerial, and corporate strengths.
MANILA, Philippines - PetroEnergy Resources Corp. has signed a P2.4-billion long-term loan facility to finance a power project by subsidiary Maibarara Geothermal Inc. (MGI).
In its disclosure to the Philippine Stock Exchange, PetroEnergy said the loan will specifically be used for the construction of the 20-megawatt Maibarara geothermal power project, the first renewable energy project under the 2008 Renewable Energy (RE) Law.
MGI is 65 percent owned by PetroEnergy’s PetroGreen Energy Corp., 25 percent by Trans-Asia Oil and 10 percent by PNOC-Renewables Corp.
MGI holds the Department of Energy (DOE) service contract for the Maibarara geothermal field in Sto. Tomas, Batangas.
The 10-year loan would be provided by Rizal Commercial Banking Corp. (RCBC) and Bank of the Philippine Islands (BPI). RCBC Capital is loan issue manager and lead arranger, BPI Capital is joint lead arranger, and RCBC Trust is loan facility agent, security trustee, and accounts trustee.
The loan will be used to fund the construction of the steamfield pipeline system, the power plant, and related transmission connection.
The 20-MW geothermal facility is intended to be put into commercial operation by late 2013.
“The 20-MW Maibarara geothermal project holds the distinction of being the first renewable energy project fully initiated under the 2008 Renewable Energy Law and the first geothermal service contract awarded during the 2009 DOE bidding round to reach this milestone of financial closing,” Energy Undersecretary Jay Layug said.
He also said the participation of two of the country’s top commercial banks testifies not only to the public-private partnership nature of the Maibarara geothermal power project but also to the investment and growth potential of the country’s RE industry.
“MGI is proud to have RCBC and BPI as part of its growing network of partners in the Maibarara geothermal power project,” MGI president Francisco G. Delfin Jr. said, adding that the loan demonstrates lenders’ belief in the commercial viability of the project as well as their regard for MGI’s technical, managerial, and corporate strengths.
Marubeni allots $700 million for Phl expansion
By Donnabelle L. Gatdula (The Philippine Star) Updated September 29, 2011 12:00 AM
MANILA, Philippines - Marubeni Corp., one of the biggest trading companies in Japan, is investing more than $700 million to expand its exposure in the Philippine power industry, Energy Secretary Jose Rene Almendras said.
He said Marubeni would be pouring in more capital for the expansion of the capacities of its Pagbilao and Sual coal-fired power facilities.
“They are looking at expanding the capacities of Pagbilao and Sual. Talks are ongoing because they are also discussing the possibility of increasing the expansion. They are thinking, if they would expand further the 400-megawatt Pagbilao capacity to 600 MW,” he said.
Meanwhile, Aboitiz Power Corp. (APC), Marubeni’s partner in the 400-MW Pagbilao power plant in Quezon, disclosed to the Philippine Stock Exchange that it has signed an agreement with Marubeni in Tokyo , Japan to formalize their intention to jointly develop, build and operate another 400-MW coal-fired plant.
APC said the proposed plant is to be located within the premises of the existing 700-MW Pagbilao power plant. Estimated cost of the power plant is between $600 million to $700 million.
Marubeni is part owner of TeaM Energy, which, in turn, owns and operates the Pagbilao plant under a build and operate contract with the National Power Corp. (Napocor)
Therma Luzon Inc. (TLI), a wholly-owned subsidiary of APC, on the other hand, is the independent power producer administrator (IPPA) of the existing Pagbilao power plant. As its IPPA, TLI handles the procurement of the fuel requirement and sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the circulating fluidized bed system to produce power with considerably less adverse effects to the environment.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station. This is part of our overall goal of providing power solutions that are competitively priced,” APC president and CEO Erramon Aboitiz said.
“We expect to complete the power plant within 2015,” he added.
APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
Marubeni Corp. is involved in the handling of products and provision of services in a broad range of sectors. These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and offshore trading.
The Japanese firm’s activities also extend to power projects and infrastructure, plants and industrial machinery, finance, logistics and information industry, and real estate development and construction.
MANILA, Philippines - Marubeni Corp., one of the biggest trading companies in Japan, is investing more than $700 million to expand its exposure in the Philippine power industry, Energy Secretary Jose Rene Almendras said.
He said Marubeni would be pouring in more capital for the expansion of the capacities of its Pagbilao and Sual coal-fired power facilities.
“They are looking at expanding the capacities of Pagbilao and Sual. Talks are ongoing because they are also discussing the possibility of increasing the expansion. They are thinking, if they would expand further the 400-megawatt Pagbilao capacity to 600 MW,” he said.
Meanwhile, Aboitiz Power Corp. (APC), Marubeni’s partner in the 400-MW Pagbilao power plant in Quezon, disclosed to the Philippine Stock Exchange that it has signed an agreement with Marubeni in Tokyo , Japan to formalize their intention to jointly develop, build and operate another 400-MW coal-fired plant.
APC said the proposed plant is to be located within the premises of the existing 700-MW Pagbilao power plant. Estimated cost of the power plant is between $600 million to $700 million.
Marubeni is part owner of TeaM Energy, which, in turn, owns and operates the Pagbilao plant under a build and operate contract with the National Power Corp. (Napocor)
Therma Luzon Inc. (TLI), a wholly-owned subsidiary of APC, on the other hand, is the independent power producer administrator (IPPA) of the existing Pagbilao power plant. As its IPPA, TLI handles the procurement of the fuel requirement and sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the circulating fluidized bed system to produce power with considerably less adverse effects to the environment.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station. This is part of our overall goal of providing power solutions that are competitively priced,” APC president and CEO Erramon Aboitiz said.
“We expect to complete the power plant within 2015,” he added.
APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
Marubeni Corp. is involved in the handling of products and provision of services in a broad range of sectors. These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and offshore trading.
The Japanese firm’s activities also extend to power projects and infrastructure, plants and industrial machinery, finance, logistics and information industry, and real estate development and construction.
Marubeni to expand power assets
Manila Times.net
Published : Thursday, September 29, 2011 00:00
Written by : Euan Paulo C. Añonuevo, Reporter
MARUBENI Corp. of Japan has committed to expand its coal-fired power plant portfolio in the Philippines.
On the sidelines of a conference, Department of Energy Secretary Jose Rene Almendras said Marubeni indicated plans to expand the 700-megawatt Pagbilao and the 1,200-megawatt Sual coal plants during President Benigno Aquino 3rd’s recent state-visit to Japan.
“Discussions are going on,” Almendras said.
Marubeni is the joint venture partner of Tokyo Electric Power Co. in TeaM Energy Corp., which in 2007 bought from US-based Mirant Corp. the Pagbilao and Sual power plants.
The output of both facilities are covered by contracts, which the government privatized to Aboitiz Power Corp. and San Miguel Corp.
As independent power producer administrators, AP and SMC handle the procurement of the fuel requirements and sale of the energy generated by the plants, which Marubeni operates under a 25-year build-operate-transfer deal that will lapse in 2025.
In a statement, AP said that it already signed an agreement with Marubeni to formalize their intention to jointly develop, build and operate a 400-megawatt coal plant beside the Pagbilao facility.
The plant is estimated to cost $600 million to 700 million.
“We expect to complete the power plant within 2015,” Erramon Aboitiz, AP president and chief executive officer, said.
AP shares rose to P27.60 each on Wednesday from P27 previously.
SMC has yet to confirm a tie-up with the Japanese firm for a coal-fired power project.
Coal is one of the cheapest fuels for electricity production and takes up roughly over a quarter of the Philippnies’ power generation mix. Compared with other conventional power plants that can run 24/7, coal-generating facilities also take a shorter time to construct.
Almendras earlier said that Luzon needs a coal plant before 2014 to avert an island-wide power shortage.
Local governments and various cause oriented groups, however, continue to oppose the development of coal projects because of the commodity’s alleged deleterious effect on health and the environment.
Published : Thursday, September 29, 2011 00:00
Written by : Euan Paulo C. Añonuevo, Reporter
MARUBENI Corp. of Japan has committed to expand its coal-fired power plant portfolio in the Philippines.
On the sidelines of a conference, Department of Energy Secretary Jose Rene Almendras said Marubeni indicated plans to expand the 700-megawatt Pagbilao and the 1,200-megawatt Sual coal plants during President Benigno Aquino 3rd’s recent state-visit to Japan.
“Discussions are going on,” Almendras said.
Marubeni is the joint venture partner of Tokyo Electric Power Co. in TeaM Energy Corp., which in 2007 bought from US-based Mirant Corp. the Pagbilao and Sual power plants.
The output of both facilities are covered by contracts, which the government privatized to Aboitiz Power Corp. and San Miguel Corp.
As independent power producer administrators, AP and SMC handle the procurement of the fuel requirements and sale of the energy generated by the plants, which Marubeni operates under a 25-year build-operate-transfer deal that will lapse in 2025.
In a statement, AP said that it already signed an agreement with Marubeni to formalize their intention to jointly develop, build and operate a 400-megawatt coal plant beside the Pagbilao facility.
The plant is estimated to cost $600 million to 700 million.
“We expect to complete the power plant within 2015,” Erramon Aboitiz, AP president and chief executive officer, said.
AP shares rose to P27.60 each on Wednesday from P27 previously.
SMC has yet to confirm a tie-up with the Japanese firm for a coal-fired power project.
Coal is one of the cheapest fuels for electricity production and takes up roughly over a quarter of the Philippnies’ power generation mix. Compared with other conventional power plants that can run 24/7, coal-generating facilities also take a shorter time to construct.
Almendras earlier said that Luzon needs a coal plant before 2014 to avert an island-wide power shortage.
Local governments and various cause oriented groups, however, continue to oppose the development of coal projects because of the commodity’s alleged deleterious effect on health and the environment.
Wednesday, September 28, 2011
Aboitiz, Marubeni ink $700M deal
400-MW coal-fed plant to rise in Quezon
By: Amy R. Remo
Philippine Daily Inquirer
11:27 pm | Wednesday, September 28th, 2011
JOINT VENTURE Abotiz Power Corp. and Japanese firm Marubeni Corp. have signed an MOU for a proposed 400-megawatt coal-fired power plant in Quezon province, which is expected to be completed by 2015.
JOINT VENTURE Abotiz Power Corp. and Japanese firm Marubeni Corp. have signed an MOU for a proposed 400-megawatt coal-fired power plant in Quezon province, which is expected to be completed by 2015.
Aboitiz Power Corp. and Marubeni Corp. of Japan are investing as much as $700 million (more than P30 billion) to jointly develop, build and operate a 400-megawatt coal-fired power plant in Quezon.
In a disclosure to the Philippine Stock Exchange, APC said it signed a memorandum of understanding with Marubeni for the proposed power plant, which will be constructed within the premises of the existing 700-MW Pagbilao coal facility in Quezon.
The construction of the coal plant, which is seen to add the much-needed capacity for the Luzon grid, is expected to be completed by 2015.
The agreement was signed by APC president and CEO Erramon I. Aboitiz and Marubeni executive managing director Shigeru Yamazoe during President Aquino’s visit to Japan. The terms and conditions of the joint investment will, however, be finalized in a definitive agreement to be agreed upon by the parties.
Separately, Energy Secretary Jose Rene D. Almendras told reporters Wednesday that while the parties have initially agreed to expand by 400 MW, there was talk of further increasing this to 600 MW.
Almendras also disclosed that the plans to expand the 1,200-MW Sual coal-fired power plant were being firmed up. San Miguel Corp., which has the IPP administration contract for Sual, has yet to confirm its plans as of press time.
Marubeni is part-owner of Team Energy, which owns and operates the Pagbilao and Sual power facilities under a build-and-operate contract with the state-run National Power Corp. (Napocor).
Therma Luzon Inc. (TLI), a wholly owned subsidiary of APC, is currently the IPP administrator of the existing Pagbilao power plant. As an IPPA, Therma Luzon has been tasked to handle the procurement of its fuel requirements as well as the sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the circulating fluidized bed system to produce electricity with considerably less adverse effects to the environment, according to APC.
By: Amy R. Remo
Philippine Daily Inquirer
11:27 pm | Wednesday, September 28th, 2011
JOINT VENTURE Abotiz Power Corp. and Japanese firm Marubeni Corp. have signed an MOU for a proposed 400-megawatt coal-fired power plant in Quezon province, which is expected to be completed by 2015.JOINT VENTURE Abotiz Power Corp. and Japanese firm Marubeni Corp. have signed an MOU for a proposed 400-megawatt coal-fired power plant in Quezon province, which is expected to be completed by 2015.
Aboitiz Power Corp. and Marubeni Corp. of Japan are investing as much as $700 million (more than P30 billion) to jointly develop, build and operate a 400-megawatt coal-fired power plant in Quezon.
In a disclosure to the Philippine Stock Exchange, APC said it signed a memorandum of understanding with Marubeni for the proposed power plant, which will be constructed within the premises of the existing 700-MW Pagbilao coal facility in Quezon.
The construction of the coal plant, which is seen to add the much-needed capacity for the Luzon grid, is expected to be completed by 2015.
The agreement was signed by APC president and CEO Erramon I. Aboitiz and Marubeni executive managing director Shigeru Yamazoe during President Aquino’s visit to Japan. The terms and conditions of the joint investment will, however, be finalized in a definitive agreement to be agreed upon by the parties.
Separately, Energy Secretary Jose Rene D. Almendras told reporters Wednesday that while the parties have initially agreed to expand by 400 MW, there was talk of further increasing this to 600 MW.
Almendras also disclosed that the plans to expand the 1,200-MW Sual coal-fired power plant were being firmed up. San Miguel Corp., which has the IPP administration contract for Sual, has yet to confirm its plans as of press time.
Marubeni is part-owner of Team Energy, which owns and operates the Pagbilao and Sual power facilities under a build-and-operate contract with the state-run National Power Corp. (Napocor).
Therma Luzon Inc. (TLI), a wholly owned subsidiary of APC, is currently the IPP administrator of the existing Pagbilao power plant. As an IPPA, Therma Luzon has been tasked to handle the procurement of its fuel requirements as well as the sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the circulating fluidized bed system to produce electricity with considerably less adverse effects to the environment, according to APC.
Marubeni Joins Pagbilao's Plant Expansion
Manila Bulletin
By MYRNA M. VELASCO
September 28, 2011, 10:58pm
MANILA, Philippines — The most awaited investment decision on the 400-megawatt expansion of the Pagbilao coal-fired power facility is finally moving headway with the tie-up arrangement firmed up by Japanese firm Marubeni Corporation with Aboitiz Power group on such undertaking that will cost $600 million to $700 million.
In a statement to the media, Aboitiz Power disclosed that it signed an agreement with Marubeni in Tokyo yesterday (September 27) “to formalize their intention to jointly develop, build and operate a 400-MW coal-fired plant.”
The investment pact, initially sealed through a memorandum of understanding (MoU), was signed by AboitizPower President and CEO Erramon Aboitiz, and Marubeni Executive Managing Director and Board Member Shigeru Yamazoe.
The project sponsors for the new power plant, however, qualified that the facility will basically be considered a new one. The use of the term ‘expansion’ is being used with caution given that the project and market structuring of the 400-megawatt facility differs entirely from the construction and implementation parameters of the existing Pagbilao asset.
Aboitiz firm’s wholly-owned subsidiary Therma Luzon, Inc. (TLI) is currently the independent power producer administrator (IPPA) for the Pagbilao facility – which simply means that it assumed the responsibilities of trading (at the spot market) and selling the plant’s capacity to interested off-takers.
The partnership of the two firms for the facility’s expansion will then solve dilemmas as to the utilization of common or shared facilities – which are deemed vital in the proposed expansion because they can provide economies scale in magnitude of investment costs. The facility is targeted on stream between next year to 2013.
Describing the deal as part of the Aboitiz group’s overall goal to provide competitively-priced power in the country, the company’s chief executive expressed optimistic that they can bring the project to fruition.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station,” Aboitiz said.
Apart from Pagbilao, Energy Secretary Rene D. Almendras disclosed that discussions for the expansion of the Sual power facility in Pangasinan have also progressed as there have been separate talks between Marubeni and San Miguel Corporation president Ramon S. Ang during President Aquino’s state visit in Japan.
By MYRNA M. VELASCO
September 28, 2011, 10:58pm
MANILA, Philippines — The most awaited investment decision on the 400-megawatt expansion of the Pagbilao coal-fired power facility is finally moving headway with the tie-up arrangement firmed up by Japanese firm Marubeni Corporation with Aboitiz Power group on such undertaking that will cost $600 million to $700 million.
In a statement to the media, Aboitiz Power disclosed that it signed an agreement with Marubeni in Tokyo yesterday (September 27) “to formalize their intention to jointly develop, build and operate a 400-MW coal-fired plant.”
The investment pact, initially sealed through a memorandum of understanding (MoU), was signed by AboitizPower President and CEO Erramon Aboitiz, and Marubeni Executive Managing Director and Board Member Shigeru Yamazoe.
The project sponsors for the new power plant, however, qualified that the facility will basically be considered a new one. The use of the term ‘expansion’ is being used with caution given that the project and market structuring of the 400-megawatt facility differs entirely from the construction and implementation parameters of the existing Pagbilao asset.
Aboitiz firm’s wholly-owned subsidiary Therma Luzon, Inc. (TLI) is currently the independent power producer administrator (IPPA) for the Pagbilao facility – which simply means that it assumed the responsibilities of trading (at the spot market) and selling the plant’s capacity to interested off-takers.
The partnership of the two firms for the facility’s expansion will then solve dilemmas as to the utilization of common or shared facilities – which are deemed vital in the proposed expansion because they can provide economies scale in magnitude of investment costs. The facility is targeted on stream between next year to 2013.
Describing the deal as part of the Aboitiz group’s overall goal to provide competitively-priced power in the country, the company’s chief executive expressed optimistic that they can bring the project to fruition.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station,” Aboitiz said.
Apart from Pagbilao, Energy Secretary Rene D. Almendras disclosed that discussions for the expansion of the Sual power facility in Pangasinan have also progressed as there have been separate talks between Marubeni and San Miguel Corporation president Ramon S. Ang during President Aquino’s state visit in Japan.
Marubeni, Aboitiz to build 400-MW plant
Business World Online
Posted on September 28, 2011 10:47:11 PM
MARUBENI CORP. and Aboitiz Power Corp. are building another plant at the Pagbilao site. -- www.Marubeniphil.com
Marubeni and Aboitiz Power on Tuesday “formalized the intention” to jointly develop and construct the power plant, a disclosure to the local bourse read, providing more details to an investment commitment reported by the government during President Benigno S.C. Aquino III’s state visit to Japan.
The new generator, slated for completion by 2015, will rise on the same complex housing the exisiting 700-megawatt Pagbilao power plant.
“Like the Pagbilao facilities, the new power plant will also run on clean coal generation,” Aboitiz Power said.
Marubeni is the part-owner of TeaM Energy which operates the Pagbilao power plant. Aboitiz Power’s subsidiary Therma Luzon, Inc. holds the independent power producer administrator (IPPA) contract for the plant.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station,” Erramon I.Aboitiz, Aboitiz Power president and chief executive, said in the statement.
“This is part of our overall goal of providing power solutions that are competitively priced,” Mr. Aboitiz said.
Aboitiz Power won the contract for the Pagbilao plant in 2009. It was declared the highest bidder with an offer of $691 million for the power plant.
Aboitiz Power’s consolidated net income fell 17% to P10.6 billion in the first half from P12.7 billion.
Its core net income fell 23% to P9.9 billion.
Shares of Aboitiz Power closed at P27.60, up 2.2% from its previous close of P27 apiece.
Marubeni is also expected to expand the 1,200-MW Sual power plant in Pangasinan with San Miguel Corp., the firm with rights over selling the generated electricity according to the government.
Marubeni and San Miguel officials could not be immediately reached to confirm this.
“They were discussing the possibility of increasing the expansions,” Energy Secretary Jose Rene D. Almendras told reporters in a chance interview.
The 400-MW expansion planned for Sual could be hiked to 600-MW instead, Mr. Almendras said. -- Emilia Narni J. David
The new generator, slated for completion by 2015, will rise on the same complex housing the exisiting 700-megawatt Pagbilao power plant.
“Like the Pagbilao facilities, the new power plant will also run on clean coal generation,” Aboitiz Power said.
Marubeni is the part-owner of TeaM Energy which operates the Pagbilao power plant. Aboitiz Power’s subsidiary Therma Luzon, Inc. holds the independent power producer administrator (IPPA) contract for the plant.
“We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station,” Erramon I.Aboitiz, Aboitiz Power president and chief executive, said in the statement.
“This is part of our overall goal of providing power solutions that are competitively priced,” Mr. Aboitiz said.
Aboitiz Power won the contract for the Pagbilao plant in 2009. It was declared the highest bidder with an offer of $691 million for the power plant.
Aboitiz Power’s consolidated net income fell 17% to P10.6 billion in the first half from P12.7 billion.
Its core net income fell 23% to P9.9 billion.
Shares of Aboitiz Power closed at P27.60, up 2.2% from its previous close of P27 apiece.
Marubeni is also expected to expand the 1,200-MW Sual power plant in Pangasinan with San Miguel Corp., the firm with rights over selling the generated electricity according to the government.
Marubeni and San Miguel officials could not be immediately reached to confirm this.
“They were discussing the possibility of increasing the expansions,” Energy Secretary Jose Rene D. Almendras told reporters in a chance interview.
The 400-MW expansion planned for Sual could be hiked to 600-MW instead, Mr. Almendras said. -- Emilia Narni J. David
Maibarara geothermal project bags P2-B loan
Business World Online
Posted on September 28, 2011 10:44:39 PM
PROPONENTS BEHIND the Maibarara geothermal power project have bagged a P2.4-billion loan to develop the steam fields and build a power plant on the site.
Maibarara Geothermal, Inc. signed a loan agreement with Rizal Commercial Banking Corp. and Bank of Philippine Islands, according to a disclosure from Trans-Asia Oil and Energy Development Corp., which holds a 25% stake in the steam field operator.
“The funds will primarily be used for the development of the Maibarara steam field and construction of a 20-megawatt power plant,” Trans-Asia said.
“The project is expected to start operation in the third quarter of 2013,” the firm added.
The P3.22-billion project -- located in Calamba, Laguna and Sto. Tomas, Batangas -- counts PetroGreen Energy Corp. and Philippine National Oil Co.-Renewables Corp. as the other project operators aside from Trans-Asia.
The loan was granted after Trans-Asia committed to buy the plant’s output for 20 years.
National Grid Corp., meanwhile, had already agreed to connect the planned Maibarara geothermal power plant to the Luzon system.
Trans-Asia, a unit of Phinma Corp., recorded a P136.3-million net income in the first half of the year compared to its net loss of P113.9 million in the same period last year.
Consolidated revenues from January to June were down by 5.5% to P469.2 million from P496.3 million despite increased generation revenues of P27.8 million from P26.8 million.
The drop was due to lower revenue shares in a joint venture brought by low power rates and low volume of energy sold.
Trans-Asia shares rose by .03% to close at 95 centavos yesterday.
Posted on September 28, 2011 10:44:39 PM
PROPONENTS BEHIND the Maibarara geothermal power project have bagged a P2.4-billion loan to develop the steam fields and build a power plant on the site.
Maibarara Geothermal, Inc. signed a loan agreement with Rizal Commercial Banking Corp. and Bank of Philippine Islands, according to a disclosure from Trans-Asia Oil and Energy Development Corp., which holds a 25% stake in the steam field operator.
“The funds will primarily be used for the development of the Maibarara steam field and construction of a 20-megawatt power plant,” Trans-Asia said.
“The project is expected to start operation in the third quarter of 2013,” the firm added.
The P3.22-billion project -- located in Calamba, Laguna and Sto. Tomas, Batangas -- counts PetroGreen Energy Corp. and Philippine National Oil Co.-Renewables Corp. as the other project operators aside from Trans-Asia.
The loan was granted after Trans-Asia committed to buy the plant’s output for 20 years.
National Grid Corp., meanwhile, had already agreed to connect the planned Maibarara geothermal power plant to the Luzon system.
Trans-Asia, a unit of Phinma Corp., recorded a P136.3-million net income in the first half of the year compared to its net loss of P113.9 million in the same period last year.
Consolidated revenues from January to June were down by 5.5% to P469.2 million from P496.3 million despite increased generation revenues of P27.8 million from P26.8 million.
The drop was due to lower revenue shares in a joint venture brought by low power rates and low volume of energy sold.
Trans-Asia shares rose by .03% to close at 95 centavos yesterday.
Visayas ‘needs more power’
By Katlene O. Cacho
Wednesday, September 28, 2011
WHILE the Visayas now enjoys fewer power interruptions with the entry of new power plants, the Visayas grid still needs an additional capacity of 2,150 megawatts (mw) by 2030 to support future power requirements, said an official from the Department of Energy (DOE).
“The entry of new power plants that had its full operation in the second quarter has improved the power conditions in Visayas. Visayas has enough power supply for now,” said DOE assistant director Irma Exconde.
But she said despite the improved power condition, the region still needs to prepare for additional power requirement, considering its thriving economy. Exconde said the entry of new power plants in the Visayas such as the 240mw coal-fired power plant of Cebu Energy Development Power Corp. and the 200mw coal-fired power plant of Kepco-Salcon has helped supply power not only to the Visayas grid but also to Luzon.
The DOE reported that the Visayas grid had an installed capacity of 2,064mw. Its peak demand in 2010 reached 1,431mw. DoE forecast this year’s peak demand to reach 1,448mw.
Philippine Independent Power Producers Association (PIPPA) president Ernesto Pantangco, meanwhile, said there is a need to build additional capacity. DOE forecasts the demand in power to grow by 4.6 percent.
In a recent energy media workshop, Pantangco said the Visayas supply-demand balance is moving toward a surplus, with 620mw of new capacity coming from new power plants.
“Visayas has adequate power supply but come 2016, it will need additional supply,” Pantangco said.
He said the country is fortunate it didn’t have a hot summer this year as this helped address power shortage, particularly in Luzon. The excess capacity and the commercial operations of the wholesale electricity spot market in the Visayas and the wet summer have helped offset power shortage.
Pantangco, however, warned that with the National Power Corp. (NPC) no longer allowed to build new plants, the years from 2012 to 2016 will be tight reserve years unless more private sector investments in generation come in.
Apart from building new capacy, Philippine Electricity Market Corp. assistant manager for institutional relations Eric Niño Louis also said there is a need to establish a power reserve market in order to address the need for capacity when there are shortages.
“Power reserves will also help ensure reliable power supply in the system and may prevent power disruption that would impact the country’s economic activities,” Louis said.
Published in the Sun.Star Cebu newspaper on September 29, 2011.
Wednesday, September 28, 2011
WHILE the Visayas now enjoys fewer power interruptions with the entry of new power plants, the Visayas grid still needs an additional capacity of 2,150 megawatts (mw) by 2030 to support future power requirements, said an official from the Department of Energy (DOE).
“The entry of new power plants that had its full operation in the second quarter has improved the power conditions in Visayas. Visayas has enough power supply for now,” said DOE assistant director Irma Exconde.
But she said despite the improved power condition, the region still needs to prepare for additional power requirement, considering its thriving economy. Exconde said the entry of new power plants in the Visayas such as the 240mw coal-fired power plant of Cebu Energy Development Power Corp. and the 200mw coal-fired power plant of Kepco-Salcon has helped supply power not only to the Visayas grid but also to Luzon.
The DOE reported that the Visayas grid had an installed capacity of 2,064mw. Its peak demand in 2010 reached 1,431mw. DoE forecast this year’s peak demand to reach 1,448mw.
Philippine Independent Power Producers Association (PIPPA) president Ernesto Pantangco, meanwhile, said there is a need to build additional capacity. DOE forecasts the demand in power to grow by 4.6 percent.
In a recent energy media workshop, Pantangco said the Visayas supply-demand balance is moving toward a surplus, with 620mw of new capacity coming from new power plants.
“Visayas has adequate power supply but come 2016, it will need additional supply,” Pantangco said.
He said the country is fortunate it didn’t have a hot summer this year as this helped address power shortage, particularly in Luzon. The excess capacity and the commercial operations of the wholesale electricity spot market in the Visayas and the wet summer have helped offset power shortage.
Pantangco, however, warned that with the National Power Corp. (NPC) no longer allowed to build new plants, the years from 2012 to 2016 will be tight reserve years unless more private sector investments in generation come in.
Apart from building new capacy, Philippine Electricity Market Corp. assistant manager for institutional relations Eric Niño Louis also said there is a need to establish a power reserve market in order to address the need for capacity when there are shortages.
“Power reserves will also help ensure reliable power supply in the system and may prevent power disruption that would impact the country’s economic activities,” Louis said.
Published in the Sun.Star Cebu newspaper on September 29, 2011.
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