Consunji unit to expand Batangas power plant capacity
MANILA, Philippines—SEM-Calaca Power Corp. of the Consunji-led Semirara Mining Corp. will begin expanding its Batangas coal-fired power plant’s capacity to 1,200 megawatts from the current 600 MW this year.
Nestor Dadivas, director at SEM-Calaca and concurrent president of DMCI Power Corp., confirmed that the company would soon break ground within the year.
Dadivas told reporters that the ground-breaking would be for the first phase of the expansion project, covering the construction of two additional units that would each have a capacity of 150 MW, or a total of 300 MW.
The first phase is expected to be completed by 2014.
The second phase for another 300-MW expansion is also being mulled over the medium term.
Dadivas did not disclose the company’s timetable for the second phase, as well as the total cost of the expansion project.
Last year, SEM-Calaca tapped a P9.6-billion debt facility to partially finance the acquisition of the 600-MW coal-fired facility in Calaca, Batangas.
Proceeds from the term loan were then used primarily to refinance loans and shareholders’ advances extended to SEM-Calaca for down payment of the power plant’s 40-percent acquisition cost and prepayments made to the Power Sector Assets and Liabilities Management Corp. (PSALM).
A portion was also used to finance SEM-Calaca’s permanent working capital requirements.
Parent firm DMCI Holdings, which owned 56 percent of Semirara, won the bidding for the facility in July 2009 with a price offer of $361.7 million.
DMCI Holdings and Semirara then formed SEM-Calaca to specifically handle the coal facility, as well as to acquire, expand and maintain power-generating plants, develop fuel for generation of electricity, and sell electricity to any person or entity through electricity markets.
In December 2009, SEM-Calaca paid PSALM $150.8 million, representing a 40-percent down payment for the coal power plant. The deal allowed the company to assume ownership of the facility.
The company’s initial investment for the Batangas coal facility was earlier expected to reach $483.6 million, which included the acquisition cost of $361.7 million. The remaining $121.89 million had been allocated for the rehabilitation and working capital requirements of the power plant.
Further investments in the Calaca power plant are expected, given the expansion project that will double the power facility’s capacity over the medium term.
