Meralco to pursue bid for AEC stake

By Lenie Lectura - October 3, 2017
https://businessmirror.com.ph/meralco-to-pursue-bid-for-aec-stake/

THE Manila Electric Co. (Meralco) said it would pursue bidding for AES Corp.’s controlling stake in the 600-megawatt (MW) coal-power plant in Masinloc, Zambales.

Meralco President Oscar Reyes said the utility firm is not seeking a partner for this opportunity.

“We are on our own in this process. It’s Meralco only,” Reyes said. “The process requires parties to bid on their own or with a partner.”

The United States electricity giant is selling its entire 51-percent interest in the power facility it bought from the Philippine government for $930 million in 2008. The sale of the two 300-MW units is expected to happen before the year ends.

In 2014 AES sold its 41-percent stake in the Masinloc project to Thailand’s Electricity Generating Pcl. for $453 million. The World Bank’s International Finance Corp. owns the remaining 8 percent.

Other power firms that have expressed interest in AES’s power asset are San Miguel Corp. (SMC) and Abotiz Power Corp.

“Yes, we are interested,” SMC President Ramon S. Ang earlier said.

Like Meralco, Ang added SMC prefers not to partner with other firms. “Just us,” he said.

Meanwhile, AboitizPower President Antonio Moraza earlier said there are about 15 to 20 foreign and local firms interested to join the auction.

“We are interested. As long as [there are] power projects in the Philippines that [are] for sale, we will look [into these],” Moraza said. “The interest is very wide—foreign-, local-wide. I understand there is more than 15,” he added.

Reyes did not say if Meralco has submitted its bid. He only said that it’s an “ongoing process”.

When asked what makes the power asset of AES attractive to Meralco, Reyes said “It has subcritical plants in operation, while the third unit is being developed. They already have an asset.”

The utility firm is also engaged in power generation via its unit, Meralco PowerGen Corp. (MGen).

Recently, Meralco said its board has approved former Public Works Secretary Rogelio Singson’s appointment as Meralco senior vice president and president and CEO of MGen.

Singson effectively replaced Aaron Domingo, Meralco’s previous senior vice president for power generation and MGen’s general manager who left the company late last year. Also, Singson effectively replaced Reyes as MGen president.

“Clearly, I have been double handling. So, it’s great we have a senior executive of his [Singson’s] caliber. He worked with the Bases Conversion and Development Authority and the Department of Public Works and Highways. He brings with him a wealth of experience,” Reyes said. “There’re no marching orders because he’s already a leader.”

Singson, he added, is “a great value to MGen, especially at this time”.

Reyes was referring to Meralco’s power-supply agreements, which are still pending with the Energy Regulatory Commission.