2 firms eyeing turnkey contract for Sarangani coal plant expansion

by Myrna Velasco March 29, 2016
http://www.mb.com.ph/2-firms-eyeing-turnkey-contract-for-sarangani-coal-plant-expansion/


Two foreign groups — Korean firm Hyundai Engineering and Japan Gas Corporation with Toshiba Corporation – are eyeing to corner the engineering, procurement and construction (EPC) contract of the 105-megawatt (MW) expansion of the Sarangani coal-fired power plant of the Alcantara group.

This was disclosed by project company Sarangani Energy Corporation (SEC) in a statement to the media – as the project is already being advanced to construction phase.

The expansion will complete the 210MW coal-fired power development that the Alsons Power Group had blueprinted for their Sarangani development area.



According to Alsons Power vice president for Business Development Joseph Nocos, the two bidders are “global companies with extensive experience in providing turnkey EPC services for power generation projects in different countries.”

The first phase of 105MW capacity of the Sarangani coal-fired development is already set on stream this year and will be contributing to the supply of Mindanao grid.

Nocos indicated the awarding of the EPC deal for the project is targeted May this year, noting further that the Sarangani coal plant phase 2 “is expected to commence construction by the second half of 2016 and is aiming to commence operating in 2018.”

For phase 1, he emphasized that construction was already completed “and is currently undergoing testing.”

He stressed that the plant will help ensure “ample supply of power during the May 2016 elections and beyond.”

The project developer previously indicated that the cost for the second block will be a bit leaner considering the economies of scale that they can already achieve from the first phase project.

So far, the $570-million Sarangani coal-fired power plant project stands as the single biggest investment in the province and the entire Region 12.

Beyond the Sarangani power facility, the Alcantara group is also developing the 105-MW San Ramon coal-fired project in Zamboanga City. It is targeted for commercial operations in 2019.

ting market share limits had been based on “the maximum capacity of the power plants submitted by the generation companies and other entities required to submit the generation company management reports.”