Meralco spending P86b in five years

Manila Standard Today
By Jenniffer B. Austria | Nov. 10, 2014 at 11:01pm

TOKYO—Power distributor Manila Electric Co. is spending P86 billion over the next five years to improve supply and partially finance generation projects, its top executive said Monday.

Meralco president Oscar Reyes said in a news briefing here the company earmarked P50 billion for power distribution from 2015 to 2019 and another P21 billion for generation projects in the same period.

The new five-year spending plan represented a 22-percent increase from P70 billion Meralco spent from 2010 to 2014.

Reyes said the P21-billion capital spending would represent the company’s shares in P255 billion worth of power generation projects currently under its portfolio.

Among these power assets are the 600-megawatt coal-fired power plant in Subic, Zambales; 1,200-MW coal-fired power plant in Atimonan, Quezon; 455-MW coal-fired power plant in Mauban, Quezon; and 150-MW coal-fired power plant in Cebu.

Reyes said for power distribution, the company would spend an average of P13 billion annually over the next five years to finance growth- related spending, which included setting up new distribution substation and expansion of existing ones, construction of new transmission lines and installation of power facilities.

Meralco will also spend a portion of its five-year capital spending for relocation of facilities that would be affected by the huge infrastructure projects under the public-private partnership scheme.

The power retailer is also building a robust platform, including automation, technology and innovation to further enhance service and meet future growth of customers, communities and businesses.

Reyes said this year, Meralco was on track to meeting the P17.5-billion core net income target. Net income in the first nine months rose 4.9 percent to P14.31 billion from P13.64 billion a year ago, on higher energy sales. source