Alsons seeks equity partner for power project

4:00 am | Monday, February 11th, 2013

MANILA, Philippines—The Alcantara-led Alsons Consolidated Resources Inc. is considering Japan’s Toyota Tsusho Corp., the trading company of the Toyota Group, as a possible equity partner for its planned $311-million coal-fired power plant in Zamboanga City.

“A lot of companies have been coming to us, wanting to become a partner in our projects and we have refused them all (including some conglomerates intending to enter into the power generation business). Alsons is considering equity partners and Toyota Tsusho is one of them,” Luis R. Ymson Jr., chief financial officer of Alsons Consolidated, said in an interview.

Ymson told the Inquirer that the company was finalizing some requirements for the planned 105-megawatt Zamboanga coal plant project, which would be undertaken by a subsidiary called San Ramon Power Inc.

“Once this is concluded, we will be able to make a final decision on an equity partner. Toyota Tsusho has been a valued, trusted and longtime partner in our power ventures, and it will definitely be considered for [the Zamboanga coal power] project,” Ymson explained.

Alsons Consolidated announced last month that it would start developing the Zamboanga power project, which has been granted an environmental compliance certificate (ECC) early last year. The company has already finalized an engineering, procurement and construction contract with Daelim Industrial of South Korea in December 2012.

It can be recalled that Toyota Tsusho last year acquired a 25-percent stake in the Alcantara Group’s Sarangani Energy Corp., which is building a $450-million coal-fired power plant in Sarangani.

In June last year, Sarangani Energy started construction work for the first phase of its planned 210-megawatt coal-fired power facility. The first phase involves a 105-MW unit, which is set to start commercial operations by early 2015.

This coal facility is expected to help provide a long-term, more sustainable solution to the recurring power supply crunch in Mindanao, as it will ensure the availability of a baseload power station on an island that depends on hydropower resources for over half of its electricity requirements.

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Short URL: http://business.inquirer.net/?p=106979

Tags: Alsons consolidated resources , Energy , Japan , Philippines , power project , Toyota Tsusho

carlcid

This is typical of the Bourgeoisie Comprador system wherein a local entity acts as go-between for foreign entities in order to cut through red tape and secure all permits and licenses. Of course, the local partners will be richly rewarded for peddling their influence with the national and local governments. The foreign companies, on the other hand, are relieved of the trouble of having to negotiate and haggle with corrupt politicians and of being tainted with having engaged in corrupt practices and paying off grease money.
jurbinsky77

The Philippines should build coal power plants, gas-fired turbines, geothermal plants to lower the cost of electricity.

Who will come to build factories if the power cost is too high and unreliable. Investors are excited before doing “due diligence” only to find that electricity and other overhead costs are too much in the country.
For now only Meralco is benefitted from Filipino stupidity. Meralco charges transmission loss and exchange rate differential for what? Are they part of the service that the consumer gets? There is no way Meralco will improve the system because anyway, they charge the consumers for something they don’t get.

Natural gas is abounding but only the British and the Dutch are reaping the bonanza and of course, the always present corrupt Filipino politicians. And the population is oblivious to the situation. Coal is also a cheap and ready resource but pseudo environmentalists just make it a way to hinder any progress even as they exhibit their ignorance and stupidity about pollution.
A coal power plant in Nakar, Quezon should be erected to benefit, Quezon, Aurora and Bulacan.

Hydro-electric dams should be constructed. Let there be surplus of potable and irrigation water. La Mesa Dam should be expanded or complemented by new dams. Part of Marikina should be submerged as permanent water impoundment. The Angat Dam system should be a series of cascading dams, so that water flowing past the hydropower complex can be utilized and not just flow to Pampanga and ultimately to the sea.

A series of cascading water impoundment system can be constructed to manage flood and erosion. Parallel canals can be constructed to be able to divert run-off to Manila Bay or Laguna de Bay safely. The Pasig River can be modified, each side could be carved off by 4 meters to be made as drainage canals and the main channel of the river as transportation for goods and commuting public.

Alsons seeks equity partner for power project

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