Wednesday, February 27, 2019

Construction delays hit GenSan solar power plant



February 27, 2019 | 12:02 am

HARBOR STAR Shipping Services, Inc. on Tuesday said the commissioning of a subsidiary’s solar power plant project in General Santos City has been pushed back to next month, due to construction delays.
In a disclosure to the stock exchange on Tuesday, Harbor Star said the commissioning of Astronergy Development Gensan, Inc.’s (ADGI) project was originally scheduled for Jan. 31, and has now been moved to before March 31.
“The causes of delay were: (a) construction delays of support structures by the Engineering Procurement and Construction (EPC) Contractor and its subcontractors; and (b) delay in the delivery of equipment and accessories needed for the substation to connect to the grid,” the company said.
Harbor Star said delays in the construction due to the fault of the EPC contractor will be subject to penalties, under the contract.
“All the equipment and accessories are now in or en route to the project site,” the company said.
In 2017, Harbor Star’s wholly owned subsidiary Harbor Star Energy Corp. (HSEC) acquired a 60% stake in ADGI, which expanded to 100% stake last year. ADGI is licensed to operate a 25 megawatt (MW) solar power plant in General Santos City, which is expandable to 75 MW.
In the same disclosure, the tugboat and cargo vessel firm said its three-year exclusivity contract with Palau-based firm Palau Sea and Air Transport Agency (PSATA) is on hold per advice of the company.
“(PSATA) informed (Harbor Star’s) Management that there would be a delay in the implementation of the projects in Micronesia for various reasons. Thus, (Harbor Star) committed its tug and barge tandems for the Cebu-Cordoba Link Expressway (CCLEx),” it said.
“(PSATA) continues to request (Harbor Star) for barges but (Harbor Star’s) Management decided to allocate its resources to the more profitable CCLEx and Cavite Gateway projects,” it added.
Last year, Harbor Star signed a P118-million contract with Cebu Link Joint Venture (CLJV) to provide two specialized barges for the construction of Metro Pacific Tollways Corp. (MPTC)’s CCLEx project.
It is also a barge operator at the Cavite Gateway Terminal, a project of International Container Terminal Services, Inc. (ICTSI) operated by subsidiary Cavite Gateway Terminal, Inc.
Harbor Star reported flat attributable net income at P66.26 million during January to September 2018, from P65.73 million the previous year. — Denise A. Valdez

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