Toledo Power Co., a wholly owned subsidiary of Global Business Power Corp., is expanding an existing coal plant in Cebu into an 82-megawatt clean coal-fired power plant at a cost of $200 million.
Global Business, the power generation arm of the Metrobank Group, said in a statement Toledo Power signed an agreement with Carmen Copper Corp. for the supply of up to 60 MW of electricity beginning Dec. 26, 2014.
Toledo Power will design, engineer, finance and construct the 82-MW coal plant to supply electricity to Carmen Copper whose mining operations require additional power. Carmen Copper is a subsidiary of Atlas Consolidated Mining and Development Corp.
Global Business said the coal expansion project will be financed through 30-percent equity and 70-percent debt through project finance.
Construction is expected to start in the fourth quarter. The existing coal plant in Daanlungsod, Toledo City, has a capacity of 60 MW.
Global Power said it would provide more efficient energy by replacing the current coal facility with a state-of-the-art power facility using one of the latest, environment-friendly, clean coal technologies– the circulating fluidized bed boiler.
Toledo Power said the signing of the power supply agreement with Carmen Copper is a homecoming of sorts for Toledo Power, having come full circle to fulfill its primary duty to support mining operations in Toledo City.
Toledo Power, which has been producing power over the past 43 years, was initially established to serve the power requirements of the Toledo copper mine complex.
Global Power bought Toledo Power when the mine was closed in the mid-1990s. Global Power [hen, Mirant Global Corp.] used the plant to supply electricity to Cebu City, Toledo City and the Cebu Industrial Park located in Balamban, Cebu.
Global Power is one of the largest power generators in the Visayas with generating plants such as Panay Power Corp. in Iloilo and Aklan, Panay Energy Development Corp. in Iloilo City and Cebu Energy Development Corp. in partnership with the Abovant Group in Cebu.
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