Alsons awards Sarangani plant construction deal to Japan’s JGC

Posted on July 08, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=alsons-awards-sarangani-plant-construction-deal-to-japan&8217s-jgc&id=130106

ALSONS CONSOLIDATED Resources, Inc. has awarded to the local unit of Japanese company JGC Corp. the contract to build the second phase of the Sarangani coal-fired power plant it is developing with Toyota Tsusho Corp.

JGC Philippines, Inc. clinched “a lump sum turnkey basis contract” for the project in Maasim, Sarangani province, JGC said in a press release posted on its Web site on Thursday.

Tirso G. Santillan, Jr., Alsons executive vice-president, confirmed the awarding of the contract, which covers the engineering, procurement, construction and commissioning (EPCC) services for the 105-megawatt (MW) plant.

The unit is the second half of the 210-MW project being undertaken by Alsons subsidiary Sarangani Energy Corp. In April, the first 105-MW section of the plant began operating. It provides baseload power to more than 3 million residents of the province, General Santos City and other key areas of Mindanao.

“The project is scheduled for completion in April, 2019,” JGC said.

When it reaches full capacity, which Alsons previously said would be in 2018, the plant will be able to serve more than 6 million people around its service area.

Alsons has said that the $570-million power plant was the “single largest investment” in Sarangani and the whole of Soccsksargen or Region 12.

Alsons holds 75% of the subscribed capital of Sarangani Energy, while Toyota Tsusho owns the rest.

“The plant is located in the province of Sarangani, about 1,100 km south of Manila, and the electric power generated is intended to serve the needs of the province, including its major city of General Santos, thereby increasing the potential for industrial growth in the province and contributing to an improved standard of living for the population,” JGC said.

“With a growing population and steady economic growth, the Philippines is facing an increasing demand for electric power, and this situation is of particular concern on the island of Mindanao, where the shortage of power has been especially severe,” it added.

JGC said minimizing the environmental impact of the project was “a high priority.” It said this had been addressed by using a circulating fluidized bed boiler that makes possible a two-stage combustion at low temperatures, which inhibits the generation of atmospheric pollutants such as nitrogen oxide and sulfur oxide.

“This, combined with removal of the particulates contained in the off-gas, ensures that the effects of the operation of this plant on the environment are kept to a minimum,” it added.

The second unit of the Sarangani plant is one of three major power projects that Alsons is targeting to start buiding in Mindanao before the end of the year. The others are the 15-MW Siguil river run-of-river hydroelectric plant also in Maasim, and the 105-MW San Ramon Power, Inc. baseload coal-fired power plant in Talisayan, Zamboanga City.

“JGC Philippines was established in 1989 and initially undertook detailed design work for JGC projects, but in recent years, it has applied its expertise gained through that experience to carry out EPC work independently for domestic projects within the Philippines,” JGC said.

Shares in Alsons were trading at P1.98 each on Thursday, down 0.5%. -- Victor V. Saulon