Thai power firm eyes tieup with Meralco

Electricity Generating Public Co. Ltd. (EGCO) of Thailand is keen on partnering with Manila Electric Co. (Meralco) for its power plant expansion in Quezon province while looking for other opportunities, including plant acquisitions, a company official said.

EGCO wants Meralco as an offtaker and partner for the 500-megawatt (MW) second phase of its coal-fired power plant in Mauban, Quezon, Quezon Power (Philippines) Ltd. Co. managing director Frank Thiel told reporters.

Quezon Power’s existing facility includes a 460-MW coal-fired generating plant and a 31-kilometer transmission line.

“Meralco has been a great partner of Quezon (Power) and offtaker for the first unit,” Thiel said.

Aware that Meralco has other suitors for offtake deals, Thiel said Quezon Power’s draw was that it had permits, community support, land, a transmission line and a plan to synergize operations of the first and the planned second unit to bring costs down.

The construction of Quezon Power’s second unit may take about three years. Financing may come mostly from local banks but the power firm is also looking at overseas sources for complementary and competitive deals, Thiel said.

Thiel said EGCO intended to expand its presence in the Philippines, whether in traditional or renewable power generation, after having taken a controlling stake in Quezon Power.