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A Brown Co. eyes 12 power facilities in Mindanao

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MANILA, Philippines—Publicly listed A Brown Co. Inc. plans to put up 12 power projects that will generate a total of 110 megawatts of “peak” capacity for electricity-starved Mindanao.

The projects are expected to provide much-needed additional power supply for the so-called A+ or green-rated electric cooperatives in Mindanao, the company said in a regulatory filing Monday.

According to A Brown, its unit Peakpower Energy Inc. will implement the 12 projects, under separate “build-operate-maintain and transfer agreements for brand-new bunker-fired engines, which will last for 15 years.”

The projects will have a short gestation under a take or pay arrangement on the capital expenditure, and will have direct connection to the grid.

A Brown explained that the planned facilities would “address the lack of base load power in the Mindanao grid for the next two to three years.”

It will also allow the cooperatives “to meet the needs for peaking power,” A Brown added.

After signing a power purchase and transfer agreement with South Cotabato II Electric Cooperative, a 20-megawatt will be installed in the heart of General Santos City in the next 12 months.

At present, A Brown is involved in the construction of a 135-MW coal-fired power project in Concepcion, Iloilo. The facility, which is expected to be commissioned by 2015, will fill the anticipated power supply gap in Panay and the Visayas grids by 2016, the company said.

“While only 135-megawatt is on a firm basis, the plant site and support units are programmed for two units. The preparations for the second unit are forecast to begin two to three years after commissioning of the first unit,” A Brown further said.

A Brown is also eyeing a 26-MW hydropower project in Surigao and is currently awaiting the approval of its application for a renewable energy service contract.


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Tags: A Brown Co. , Energy , Mindanao , Philippines - Regions , power projects



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