Business World Online
Posted on October 13, 2014 09:46:00 PM
LUCIDUM Energy, Inc. plans to invest $600 million to develop a new coal-fired power plant in Zambales, data from the Energy department showed.
In its latest report on private sector-initiated projects, the department said the company intends to complete the feasibility study for a 300-megawatt (MW) coal project in Silanguin Bay by the end of this month.
“Commencement of construction will be based upon completion of the feasibility study and the assessment of financing companies involved,” the department said.
The $600-million project cost will be funded through a combination of debt and equity.
“Financing arrangements are currently being negotiated with two lenders and they’re waiting for the completion of the feasibility study for the validation,” the document showed.
“Initial talks have been geared towards a 60-40 debt-equity ratio,” it added.
Lucidum also started discussions with potential buyers of the electricity that will be generated by the plant, which is targeted to be completed by 2017.
With a corporate regulatory approval secured, the company is now working on other regulatory requirements and permits.
Apart from this project, another 600-MW coal plant is expected to rise in Zambales by 2017.
Masinloc Power Partners Company Ltd. (MPPCL) will be undertaking the P49.45-billion project, which will serve as the expansion of its existing coal plant in the area.
The 630-MW Masinloc power plant started commercial operations in 1998 as a government-owned facility.
US-based AES Corp. and its partners took over the facility following a 2008 auction where MPPCL submitted a $930-million winning bid. -- Claire-Ann Marie C. Feliciano source
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