Alsons Targets More Overseas Projects

Manila Bulletin
By MYRNA M. VELASCO
November 28, 2011, 1:18am


MAASIM, Sarangani — The publicly-listed Alsons Consolidated Resources Inc. of the Alcantara group is setting its sights on more overseas expansion with the North Pacific Islands – primarily in Saipan and Guam – as its new investment destination.


This will add to the company’s portfolio of offshore forays, having established already its niche in some Asian key markets – such as China, Indonesia, Vietnam and Pakistan via some involvements in various facets of operations and implementation of thermal power projects.


In an interview here, Alsons power group vice president for business development Joseph Nocos disclosed that they are joining the bidding for the proposed concession deal for Saipan’s vertically-integrated power needs.


“It is embedded within the Saipan area. So they have a bidding that has been announced. They will bid out a concession for the generation, transmission and distribution in the island of Saipan. That’s like what they did with TransCo (National Transmission Corporation) in the Philippines,” he explained. The deadline for the submission of expressions of interest (EOI) will be on December 12 this year.


With a reference price of 40 US cents per kilowatt hour (kWh), Nocos noted that this will be “an opportunity for us with vast experience in power generation…if we win that bidding, that will mark our foray into the North Pacific Islands.”


Saipan island is reportedly in need of additional capacity and the tender notice sent out to prospective investors may cover up to 70 megawatts. The facilities being planned will likely be on fast-track basis as the area is already badly in need of additional power supply.


“The plan is to replace the units with more efficient ones because these are already old,” the Alsons executive has emphasized.


For Guam, the prospect will be for additional 30 to 40 megawatts of capacity which the island needs by 2013.


“The opportunities for the private sector in Guam (are) coming into view as they get closer and closer into the relocation of the US forces from Okinawa to Guam,” Nocos said.


He qualified “when that happens, you will see a lot of interest and opportunities in Guam. Their need will be another 30 to 40 megawatts. We’re looking into that opportunity and see if it will be sound for us to join their bidding.”


A two-pronged plan has been presented as to how this part of the US territory would be building up on its power capacity – one would be for its Guam Power Authority to shell out the required investments; or they may opt to invite independent power producers (IPPs) to set on stream their needed capacity.


Alsons is just among the local energy companies firming up plans for investments outside the country. Albeit in its case, it has already gone notches ahead as compared to the other Filipino firms which have yet to pull their project blueprints from the drawing board.