Business World Online
Posted on April 14, 2014 10:16:16 PM
A UNIT of A Brown Company, Inc. and an electricity distributor in South Cotabato have sought regulatory approval for their 15-year power supply deal, according to a joint petition dated March 23.
Peakpower Soccsargen, Inc. (PSI) and South Cotabato II Electric Cooperative, Inc. (SOCOTECO II) asked the Energy Regulatory Commission (ERC) for provisional approval of their agreement and subsequently make such approval permanent.
Under the power purchase and transfer agreement (PPTA), PSI will build, operate and maintain and eventually transfer a 20.9-megawatt (MW) bunker-fired power plant in the franchise area of SOCOTECO II.
The plant will be built in Barangay Apopong, General Santos City.
The contract will have a term of 15 years starting from the commercial operations of the plant slated in the last quarter of this year.
“The expected additional capacity from PSI… will contribute greatly to the improvement of the quality, reliability and affordability of the electric power delivered to the consumers of SOCOTECO II and the security of supply for its franchise area,” the petition read.
The project cost -- which was estimated to reach P1.9 billion -- will be funded through a loan from Asia United Bank (AUB) and equity from the shareholders of PSI.
The loan agreement of PSI with AUB requires provisional approval of the ERC before the loan drawdown.
“PSI is scheduled to draw on its loan with AUB by April 2014 in order for the power plant to be completed within the period stipulated in the PPTA,” the petition read.
OTHER PROJECTS
SOCOTECO II provides electricity to South Cotabato, Sarangani and General Santos in central Mindanao.
PSI is a wholly owned subsidiary of Peakpower Energy, Inc. (PEI), which in turn is a joint venture among A Brown, Enterprise Holdings Corp., WorldPower Alliance Ltd. and Power Mavens Holdings Ltd.
Besides PSI, PEI’s another subsidiary -- Peakpower San Francisco, Inc. is building a P509-million, 5.2-MW bunker-fired plant in Agusan del Sur.
A Brown, which serves as public holding firm of the Brown Group of Companies, is primarily engaged in the business of real estate development.
Through its subsidiaries, A Brown has also ventured into oil palm nursery and seedlings distribution, palm oil milling, operation of hotels and real estate brokerage.
The company’s net income fell 94.3% to P3.99 million last year from P70.34 million in 2012. Revenues sank 25.4% to P552.72 million from P740.45 million, while cost and expenses slipped 13.3% to P554.88 million from P640.03 million.
Its shares closed at P1.45 apiece yesterday, up one centavo or 0.69% from P1.44 each on Friday last week. -- Claire-Ann Marie C. Feliciano source
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