Meralco seeks partners, funding for projects
MANILA, Philippines–The Meralco group is seeking partners and financing for a number of power plant projects to meet the growing demand for new energy capacity in Luzon.
A few months will be spent in talks with Japan’s Osaka Gas Co. Ltd. for what could be a $2-billion 1,500-megawatt (MW) integrated LNG terminal and power plant project in Luzon, Meralco chair Manuel V. Pangilinan told reporters.
A feasibility study will be done for the project, which will include a regassification unit. Meralco will determine the viability of the project before the year ends, he said.
Meralco is also seeking partners for the $2-billion, 1,200-MW Atimonan coal power plant project in Quezon province.
“We’ve sent feelers for Atimonan coal,” Pangilinan said.
Without naming the companies being considered as potential partners, Pangilinan said Meralco would be open to forging agreements with foreign and/or local firms for the project.
Meralco is set to borrow P40 billion (roughly $900 million at current rates) from local banks for its 460-MW San Buenaventura coal project in Quezon, Meralco president Oscar Reyes said in a separate interview.
The fundraising may take place as early as the second quarter of 2015, or once Meralco secures the approval of the Energy Regulatory Commission (ERC).
We’re hoping that this approval will come in the next 30 days, Reyes said.
Meralco has been undertaking energy generation projects through Meralco PowerGen Corp. (MGen).
MGen has a 51-percent stake in the coal project through San Buenaventura Power Ltd. New Growth B.V., a subsidiary of Quezon Power Philippines Ltd., owns the remaining 49 percent.
The San Buenaventura project is an expansion of the existing 455-MW coal plant of Quezon Power, which is controlled by Electricity Generating Public Co. Ltd. (Egco) of Thailand.
MGen aims to complete the San Buenaventura plant in Mauban, Quezon, by 2018 to meet the additional capacity required by that time.
We are hoping that we can accelerate the pace because it’s needed,” Reyes said, referring to the project. “We’re trying to have it in place, hopefully in time for summer 2018.”
Another MGen project set for construction is the $1-billion, 600-MW coal power plant through project vehicle Redondo Peninsula Energy Inc. (RP Energy).
“It’s up for board approval, the commercial term of lease and other concerns. We hope that they [board of directors] will approve it,” Pangilinan said.
Among the matters to be revisited are the engineering, procurement and construction deal that was shelved until early this year, when the courts junked a Writ of Kalikasan case against RP Energy’s project.
On San Buenaventura, Meralco SVP for commercial development Angelito U. Lantin said that MGen would be working on the EPC deal.
Meralco is fully aware of the prevailing power supply and demand situation where the Luzon grid faces fairly thin reserves until new power plant capacities come into place, Reyes said.
