Toyota Firm Eyes Project Stake

105-M Sarangani Coal-Fired Plant

Manila Bulletin

By MYRNA M. VELASCO

August 27, 2012, 5:50pm

MANILA, Philippines — A shareholders’ agreement is currently being finalized to cement Japanese firm Toyota Tsusho Corporation’s (TTC) 25-percent equity take in the 105-megawatt first phase Sarangani coal-fired power project of the Alcantara group in Mindanao.

The deal is expected to be firmed up before the end of this month. By then, Alsons Consolidated Resources Inc. (ACR) will be having 75-percent stake in the project’s corporate vehicle Sarangani Energy Corporation (SEC); while the Japanese firm holds the balance of 25-percent.

TTC is a publicly-listed trading company of Toyota Group. It strategically etched presence in over 60 countries for various business operations, including forays into power generation. The Japanese firm has long been eyed by the Alcantara firm for equity participation in the Sarangani power project.

 “The agreement is expected to be concluded before the end of August this year, and once the shareholders’ agreement and other necessary documents come into final effect, ACR will hold 75% equity in SEC with TTC owning 25% equity in the company,” ACR chief financial officer Luis R. Ymson Jr. has noted.

He added that the SEC power plant phase 1 “commenced the design and engineering process of construction in June, 2012.”

The power project was designed to comprise of two phases, with capacity of about 105MW each or for a total of 210MW. The first unit is due on stream by 2015; while the next one will be on-line at least a year after.

For the initial unit, 70 megawatts of the total capacity has already been committed to supply the requirements of South Cotabato II Electric Cooperative Inc. (SOCOTECO 2). It will replace the capacity that the electric cooperative is currently sourcing from power plants utilizing more expensive fuel.

The service areas of SOCOTECO 2 cover the entire province of Sarangani, as well as General Santos City and two major municipalities in South Cotabato.

The other off-takers (capacity buyers) of the Sarangani plant’s generated capacity are Agusan del Norte Electric Cooperative (ANECO), Agusan del Sur Electric Cooperative Inc. (ASELCO); and Davao del Norte Electric Cooperative Inc. (DANECO).

While both power units are already aligned among the supply solutions for brownout-plagued Mindanao grid, the Alcantara group is also pushing forward into implementation its proposed 100-megawatt San Ramon coal plant in Talisayan, Zamboanga City.

On short-term solution for the Mindanao crisis, the company is similarly working on requirements for the repowering of the 102-MW Iligan diesel power plant.

The company has indicated that “the transfer of ownership is currently undergoing procedural review by the Commission on Audit,” and that the “rehabilitation and operation of the Iligan plant will commence once the transfer is finalized.”    source