Alsons Eyes Japanese, Thai Partners

Sarangani Coal-Fed Power Project
By MYRNA M. VELASCO
November 21, 2011, 9:45pm


MANILA, Philippines — Japanese firm Toyota Tsusho Corporation and Thailand’s Electricity Generating Company (EGCO) are two major partners being eyed by the Alcantara-owned Alsons Consolidated Resources Inc. for its planned 200-megawatt Sarangani coal-fed power project in Mindanao.


“We confirm that we are in discussions with the partners in our existing subsidiaries, namely EGCO of Thailand and Toyota Tsusho Corporation, the trading company of the Toyota Group, for possible partnership in the 200MW coal-fired power plant project being implemented by subsidiary Sarangani Energy Corporation (SEC),” the listed firm has noted in its disclosure to the Philippine Stock Exchange.


Sources from Thai’s ECGO similarly indicated that the tie-up plan is a matter being discussed with and by principals in their Bangkok headquarters.


The Alcantara firm further indicated that “some Philippine and other foreign business groups have likewise expressed interest in partnering with Alsons in this and other power projects the group is envisioning which are meant to cover the looming acute power shortage in Mindanao.”


It emphasized though that “the possible entry of partners in the Alsons projects will still undergo approval by (its) Board.”


Of all the three grids, the power supply situation in Mindanao is seen most precarious. Its heavy dependence on hydro has been taking its toll on its supply reliability, hence, fuel diversification on its future energy supply is sternly being pushed by the Department of Energy.


Nevertheless, the department’s preference for coal as a ‘reliable option” is igniting fierce criticism from the other groups which are proposing to put up solar capacities to avert supply shortages in the grid. The issues of reliability as well as the feed-in-tariff subsidy for the technology however have been triggering the department’s apprehensions though as far as embracing solar an alternative is concerned.


Meanwhile, the Alcantara group noted that its strategy would be to “replace the existing diesel plants in locations where these are now embedded with coal-fired plants using circulating fluidized bed (CFB) boilers with capacities of 200MW in Sarangani and 100MW in Zamboanga.”


It stressed that the Sarangani facility’s construction will be done in two phases at 100MW capacity each. The engineering, procurement and construction (EPC) construct for the initial phase was awarded to South Korean firm Daelim Industrial Co.