First Gen targets early commissioning of San Gabriel plant

By Donnabelle L. Gatdula (The Philippine Star) | Updated February 19, 2014 - 12:00am

MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, is fasttracking the commissioning of its 414-megawatt (MW) San Gabriel power facility in Batangas to run by the end of 2015 from the original  March 2016 target.

In an interview on the sidelines of the Philippine Investment Forum, First Gen president and COO Francis Giles Puno, said the project is proceeding smoothly.

“Right now, we are doing site preparation. In Germany, they are starting the manufacturing of the turbine. We expect it to come on time or earlier, he said.

Puno said they have raised about $750 million to finance the first phase of the project and the $120 million funding for the 100-MW Avion aero facility which will be completed within this year.

First Gen earlier raised $300 million through bonds and borrowed about $200 million from Germany’s ECA for the capital expenditures for the San Gabriel and Avion facilities. The other financing requirements would be covered by internally-generated funds.

Puno said once completed, the produce from the San Gabriel plant, which is expected to fetch a lower price than diesel-fired, would be sold to Manila Electric Co. (Meralco), industrial users, other distribution utilities and the wholesale Electricity Spot Market (WESM).

He said they hope to expand the San Gabriel power plant or undertake the next two phases of the facility which will total to 800 MW on or before 2017.

After the San Gabriel plant, he said they also have the option to fasttrack the construction of its LNG plant.

He said they would be raising an additional $1 billion for the LNG facility, which will need four years to construct.

The First Gen executive said the company is also planning to expand its Avion facilities if needed as this will be easier and faster to build.

“In our case, we are doing our share in helping bring down prices of electricity. San Gabriel and Avion are helping tame power prices since they offer cheaper than oil power plants,” he said.

The San Gabriel power plant in Sta. Rita, Batangas City will be built next to First Gen’s 1,000-MW Sta. Rita and 500-MW San Lorenzo natural gas plants.   source