Published November 26, 2016, 10:01
PM
The power generation arm of Consunji
group is in negotiations with American firm Black & Veatch for the
engineering, procurement and construction (EPC) contract of its $1.4- billion
St. Raphael Power Generation Corporation coal-fired power project in Batangas.
According to Nestor Dadivas,
president of DMCI Power, an affiliate firm of Semirara Mining and Power
Corporation (SMPC), talks are still ongoing with the prospective turnkey
contractor for the 700-megawatt coal-fired power plant.
He said award will be scheduled
after project developer firm SMPC secures the approval of the Energy Regulatory
Commission (ERC) on its power supply agreement (PSA) with Manila Electric
Company.
The power project is the Consuji
group’s partnership with Meralco PowerGen, the power generation arm of the
country’s biggest power utility.
Company officials said Japanese firm
Marubeni Corporation will likely join the consortium in the project’s corporate
vehicle for 20-percent equity take. Meralco and SMPC hold 40-percent
shareholdings each.
Dadivas said Marubeni sought for an
extension on timeframe on when they will firm up their tie-up deal with
partners in the St. Raphael power project.
He noted they have not identified
yet which banks will finance the proposed facility, but the loan component will
comprise 70-percent of the total project financing.
The equity portion at 30-percent,
will be shared in by the project sponsors, proportionate to their respective
equity in the venture.
The St. Raphael power facility will
be a relevant addition to the Consunji group’s power generation portfolio –
aside from its ventures at off-grid areas.
The company first acquired the 600-megawatt
Calaca coal-fired power plant in the privatization exercise of Power Sector
Assets and Liabilities Management (PSALM), which it subsequently expanded by
300 megawatts. (MMV)
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