Power-investment pledges now P310 billion

Business Mirror

23 Oct 2013 

 

Written by Estrella Torres

The country’s electric-power woes may soon be over if the government could take full advantage of the pledges made by local and foreign investors on renewable-energy and power-generating projects.

The Board of Investments (BOI) on Wednesday revealed that the country’s power sector gathered the greatest number of investment pledges in the last seven months, with a 25-percent increase to P309.7 billion compared to P248.2 billion in the same period last year.

Trade Undersecretary and BOI Managing Head Adrian Cristobal Jr. said a huge part of the investment commitments was on renewable energy and power-generating projects that would help the country meet its rising power requirements.

When these power projects become fully operational, they will be crucial in sustaining the power needs of the country’s modernization and industrialization in the years ahead, Cristobal said on Wednesday.

He said investment pledges from local businessmen increased by 12 percent to P258.7 billion from last year’s P230.5 billion.

Investment pledges from foreign investors surged by 185 percent to P51 billion this year, compared to last year’s P17.9 billion.

The majority of the foreign investments are from the United States —reaching P41.7 billion, or 82 percent of the total investment pledges from foreign sources during the period.

The BOI chief said the American-owned GNPower Ltd.  Co. has the biggest investment pledge, with the approved project worth P41.23 billion for the 600-megawatt (MW) power project in Bataan.

Meanwhile, the electricity, gas, steam and air-conditioning supply sector such as power-generating plants and renewable-energy projects copped the largest share of investment commitments by sector at P250.69 billion, or 80 percent.

The BOI said investments in real-estate activities followed on the list of investments surges for the country. They involved specifically the mass-housing subsector with P34.1 billion or 11 percent share.

Cristobal said South Korea was listed as the second-biggest foreign investor in the country’s energy sector, with P2.26 billion, primarily focused from its P803-million capital in Mirae Asia Energy Corp. solar project in Ilocos Norte as well as the P284-million infusion in Daesang Ricor Corp.’s glucose syrup project in Cagayan de Oro City.

Australia invested P1.79 billion, including the Mindanao Mineral Processing and Refining Corp.

Dutch and Singaporean investors, meanwhile, ranked third-largest foreign investors in the power sector with the Philnewenergy Inc. solar project in Davao del Sur. The Netherlands contributed P1.33 billion, while Singapore had a share of P492.1 million.

Cristobal said the surge in investment approvals came largely from the approval of big-power projects led by P41.23 billion, for the 600-MW plant of GNPower Ltd. Co.  in Mariveles, Bataan.

Cristobal said huge investments in the energy sector were needed badly to augment the country’s increasing power demand. The Department of Energy’s Power Development Plan 2010 to 2030 indicated that the country’s peak demand for energy is expected to increase to 24,534 MW in 2030.   source