GBPC, Vivant firm up deal to put up coal power plant

By Danessa Rivera (The Philippine Star) | Updated December 6, 2017 - 12:00am
http://www.philstar.com/business/2017/12/06/1765585/gbpc-vivant-firm-deal-put-coal-power-plant

MANILA, Philippines — Cebu-based Vivant Corp. and Global Business Power Corp. (GBPC) have firmed up their partnership to put up a 670-megawatt (MW) coal-fired power plant in La Union, solidifying their entry into Luzon.

In a disclosure to the Philippine Stock Exchange, Vivant said its unit Vivant Integrated Generation Corp. (VIGC) has signed a pre-development agreement (PDA) with GBPC to build a 2x335-MW coal-fired power plant in Luna, La Union.

The two firms will jointly participate through Lunar Powercore Inc. in a project under special purpose vehicle Global Luzon Energy Development Corp. (GLEDC).

GLEDC will undertake the financing, design, procurement, construction, testing, commission, operation and maintenance of the coal-fired power plant.

VIGC and GBPC have set aside P450 million to jumpstart the project, which is scheduled to start commercial operations in 2022.

GLEDC has secured local government endorsements and land conversion certificates while The project company is awaiting the Energy Regulatory Commission’s approval for its power supply agreement (PSA) of up to 600 MW with Manila Electric Co. (Meralco) signed in 2016.

It is also waiting for the issuance of an environmental compliance certificate from the Department of Environment and Natural Resources, which is required to hear the merits of the PSA.

Vivant said it is pouring in P67 billion for new power generation projects in three years starting 2015 as part of the company’s strategy of continuously expanding in the power industry.

Also a major power player in Visayas, GBPC announced plans to expand in Luzon and Mindanao by investing in traditional power projects and venturing into the renewables sector to meet its goal of doubling its capacity in five years.

GBPC is now led by businessman Manuel Pangilinan after Metro Pacific Investment Corp. (MPIC) – which he chairs – acquired a 56 percent stake in the company in May 2016 for P22.06 billion following a strategic alliance with tycoon George Ty’s GT Capital Holdings Inc.

GT Capital then entered as a strategic investor in MPIC, acquiring a 15.6 percent stake for P21.96 billion.