Friday, March 1, 2013

A. Brown Forms Power Subsidiary


Manila BulletinArticle by: Myrna M. VelascoPublished: March 1, 2013

Publicly-listed A. Brown Company, Inc. has secured the approval of the Securities and Exchange Commission (SEC) for the incorporation of its spinoff power subsidiary PeakPower Energy, Inc.
This will be the company’s investment arm in the energy sector, primarily its expanding ventures into power generation.
It must be noted that the A. Brown Group through its initial corporate vehicle Palm Thermal Consolidated Holdings Corporation, is already pushing forward its venture into the planed 270-megawatt coal-fired power project in Iloilo.
It just recently partnered with the AC Energy Holdings of the Ayala Group and the Jin Navitas Resource Inc., which is a unit of Rebisco Corporation, for the power project.
The project’s implementation blueprint calls for initial construction of the first 135-MW unit requiring R12.5 billion capital outlay; and will be expanded eventually to double its capacity to 270MW.
The facility’s electricity generation is expected to beef up supply in the Visayas grid around 2015, or upon its targeted synchronization into the grid.
The energy sector is practically a well-navigated territory for the A. Brown Group, although in power generation, it is still considerably taking its baby steps.
In the oil and gas sector in particular, the Monte Oro Resources unit of A. Brown has already established its presence in various exploration of petroleum blocks.
When the National Transmission Corporation (TransCo) was privatized via a concession deal in 2009, the A. Brown group was also part of the consortium which won the bid – later incorporated as the National Grid Corporation of the Philippines.
It, however, sold its interest in NGCP to the Sy group and that marked its calculated exit in the transmission segment of the power industry.
Its foray into power generation is seen as its next strategic investment move in the sector given that its targeted site in Visayas is forecast to have supply shortfalls around 2015-2016.   source

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