Semirara, Meralco unit OK supply deal

Manila Standard Today
By Alena Mae S. Flores | Aug. 25, 2015 at 11:30pm

South Luzon Power Generation Corp., a wholly-owned unit of Semirara Mining and Power Corp., signed a power supply agreement with Manila Electric Co.’s local retail electricity supplier.

Semirara disclosed to the Philippine Stock Exchange Tuesday South Luzon under the agreement would supply Meralco with a total capacity of 120 megawatts.

The Consunji Group acquired the 600-MW Calaca coal-fired power plant from the government in 2009. The plants have since undergone rehabilitation to ensure reliable delivery of power supply.

South Luzon, the project company, meanwhile, is pursuing the expansion of the Calaca power plant by another 300 MW set for commercial operations this year.

Semirara said the supply deal between Southwest Luzon and the Meralco unit covered a two-year period from March 26, 2016 to Dec. 25, 2018 and could be extended up to four years.

Meralco, the country’s biggest power distributor, has over five million customers in its franchise area. The bulk of its supply comes from power supply agreements and independent producers.

Semirara is also pursuing another 350-MW expansion in Calaca, Batangas, which is estimated to cost P22 billion and on top of the 300-MW project now under construction.

Semirara chairman and chief executive Isidro Consunji earlier said the company was in talks with a local company for a possible joint venture in the new 350-MW coal project.

Consunji said with a more reliable power generation capacity from the existing and newly-completed plants, Semirara was facing better financial prospects this year.

He earlier said the company’s net income might reach between P9 billion and P10 billion this year.

Consunji said P1 billion will come from the operations of the 300-MW coal plant expansion in Calaca, Batangas.

“We are optimistic about our prospects for 2015 and onwards with the 2x300 MW in full operation and the coming on-stream of our 2x150 MW CFB power plants starting second quarter of 2015,” Consunji said.

He said the company anticipated top-line growth to come in track in 2015 with the normalization of the Sem-Calaca units 1 and 2 and the completion of the South Luzon power plants.

“This year the 2x150 MW will start contributing revenue from the sale of power from new power supply agreements,” he said. source