By | Feb. 01, 2014 at 12:01am
Mitsubishi Corp. and Toshiba Plant Systems & Services Corp. of Japan won the contract to build a 110-megawatt coal power plant in Misamis Oriental province.
Local power producer Minergy Coal Corp. tapped the two Japanese companies as the turnkey contractor in Balingasag, Misamis Oriental.
The project will be composed of two units of 55 MW each. The plant will supply the power needs of Cagayan Electric Power and Light Co., or Cepalco.
Minergy Coal is a wholly- owned subsidiary of Mindanao Energy Systems Inc., a power generation company established by Cepalco.
Mitsubishi said on its Web site the project would be undertaken on a full turnkey basis, which included engineering, civil work, procurement, erection and testing.
Project completion is expected by the end of March 2017.
Mitsubishi said in addition to the two units of 55 MW each, another unit might be ordered within the fiscal year as an option.
The total contract price, including the option, was pegged at around $300 million.
Cepalco’s franchise area covers Cagayan de Oro City and the towns of Tagoloan, Villanueva and Jasaan in Misamis Oriental.
The 110-MW Minergy coal plant, estimated to cost P14.55 billion, aims to reduce the power deficit in Mindanao to 68 MW by 2017.
Mitsubishi said electricity demand in the Philippines, especially in Mindanao, was expected to rise sharply due to rising population and stable economic growth.
It said new infrastructure, including the development of new power plants, were urgently needed in order to fulfill the growing demand for electricity.
The project is expected to serve as a model for infrastructural development in Mindanao, it said.
Mitsubishi recently released a corporate strategy seeking to accelerate global business development by leveraging the shift towards Asian markets, which are gaining greater international presence both as resource and as consumer markets.
The company said it planned to continue pursuing power generation related business opportunities in Asia in the future. source
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