Mindanao power capacity to grow

Business World Online
Posted on May 23, 2014 09:16:12 PM

ALSONS Consolidated Resources, Inc. (ACR) targets to grow its power generation portfolio in Mindanao to 590-megawatts (MW) by 2019, the firm's top official told reporters on Friday.
"Our strong commitment to the energy and power business in Mindanao is a carefully calculated strategy that the company has decided to adopt, in recognition of the tremendous opportunities available to those who are both decisive and prepared to act in this market," Chairman and President Tomas I. Alcantara said after the company's annual stockholders' meeting in Mandarin Oriental.

The official said the Alcantara Group has committed to reach 590-MW capacity by 2019, which is expected to be equivalent to nearly 30% of Mindanao's projected peak demand.

Through Western Mindanao Power Corp. (WMPC) and Southern Philippines Power Corp. (SPPC), the firm operates a 100-MW diesel plant in Zamboanga City and 55-MW diesel plant in Sarangani province, respectively.

To add to its existing portfolio, the company -- through Mapalad Power Corp. -- reacquired and rehabilitated Iligan diesel plant in Lanao del Norte which started contributing 103-MW to the Mindanao grid last year.

Mr. Alcantara also cited ongoing construction of its $570-million, 210-MW coal-fired power plant in Maasim, Sarangani.

"The plant will have an initial 105 MW output in 2015 for about 3.47 million people in Sarangani Province, General Santos City and key areas in South Cotabato, Compostela Valley, Agusan del Norte, Agusan del Sur and majority of Davao del Norte," the official said.

"Part of ACR's expansion plan includes the Maasim plant reaching its full 210 MW capacity in 2016 that will serve an additional 3.8 million people residing in Cotabato, South Cotabato and Zamboanga del Norte," he added.

Furthermore, Mr. Alcantara said that San Ramon Power, Inc. (SRPI) will also push through with its 105-MW coal plant in Talisayan, Zamboanga City.

"The SRPI plant is set to provide baseload power to Zamboanga and other key municipalities in the region," said Mr. Alcantara.

To complete the pipeline of projects, Mr. Alcantara said it will build a 17-MW hydroelectric power plant in Siguil River, also in Sarangani.

"These five projects will complement and not replace the operations of existing power generating projects, namely: the WMPC and SPPC," said Mr. Alcantara.

"These two facilities can still perform in a competitive market and will play a vital role in the company's operations."

Mr. Alcantara said ACR wants to contribute to the economy of Mindanao.

"We have always aspired to be the instrument of progress in the island and we are poised and ready to help Mindanao realize its potential," he said.

ACR -- which serves as the Alcantara Group's holding firm -- saw profits grow 3% to P228.88 million last quarter from P222.94 million in the same period last year. Revenues more than doubled to P1.18 billion from P504.98 million, while expenses more than tripled to P861.34 million from 253.49 million.

Shares of the company closed at P1.81 apiece on Friday, unchanged from Thursday. -- Claire-Ann Marie C. Feliciano source