First Gen may expand Pagbilao coal power plant

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TUESDAY, 01 MAY 2012 17:57 PAUL ANTHONY A. ISLA

LISTED First Gen Corp. has renewed its interest in buying into the planned expansion of TeaM Energy Corp.’s 735-megawatt Pagbilao coal-fired power plant, said Francis Giles Puno, the company president.

He told reporters in an interview they are renewing their interest because of the need for additional capacity in the Luzon grid.

“We’re talking to them but we don’t know yet how it’s going to proceed. We are a major proponent, but we’re gonna be a minority so things like coal supply will not be our problem,” he said.

In 2007, First Gen agreed with TeaM Energy Corp. to take one-third of the Pagbilao coal-fired power plant expansion project.

Puno said TeaM Energy agreed to give First Gen rights if they decide to expand.

“So at that time, it was all potential growth and since it’s been announced it triggers certain rights for us to be able to buy into the Pagbilao expansion,” he said.

TeaM Energy Corp. - the joint venture between Tokyo Electric Power Corp. and Marubeni Corp. - earlier said it was preparing to expand by another 400-megawatt (MW) the 735-MW Pagbilao coal-fired power plant.

Federico Puno, TeaM Energy president and chief executive, said they have agreed to have a 50-50 joint venture with AboitizPower Corp. - the independent power producer administrator (IPPA) - for the contracted capacity of the Pagbilao power plant.

Puno said the expansion project would entail an investment of $600-$700 million, which they plan to finance through equity and project financing. 

(Paul Anthony A. Isla)   source