Monday, April 4, 2016

DMCI, Meralco eye possible partnership



By Richmond Mercurio (The Philippine Star) | Updated April 4, 2016 - 12:00am

MANILA, Philippines – DMCI Holdings Inc. of the Consunji Group is working on a possible partnership with power utility giant Manila Electric Co. and Marubeni Corp. of Japan for the next phase of expansion of its Calaca coal-fired power plant in Batangas.
“We’re talking to them, Meralco and Marubeni, for the 2x350 megawatts (MW) expansion of Calaca. That is not yet signed so it is still a work in progress,” DMCI Holdings chairman and president Isidro Consunji said.
Consunji said he hopes to finalize and sign the agreement with both parties within the year.
He said the structure of the proposed partnership is likely to be 40-40-20, with DMCI and Meralco getting the larger shareholdings.
The Calaca power plant initially has 600 MW of generating capacity prior to the 300-MW phase one expansion completed last year.
The second phase of expansion will see construction of two single units of 350 MW each.
The power facility utilizes local coal from the Semirara mines in Antique.
With the power generation emerging as one of DMCI’s most profitable businesses in recent years, Consunji said the company intends to continue ramping up its power portfolio to include renewable energy.
Among the renewable energy sources the group is currently looking at are hydropower and biomass.
Consunji said the company intends to build a 10 MW mini-hydropower plant in Cagayan De Oro and another 20-MW in Sultan Kudarat.
He said a 23-MW biomass facility is also being planned.
“Financial closing is the issue at present. The project has to be bankable so we’re now in the process of getting bank approval,” Consunji said.

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