Consunji group expanding power generation business

DMCI Holdings president Isidro Consunji: Another power plant PHOTO FROM DMCIRESIDENCES.COM

MANILA, Philippines—Consunji-led conglomerate DMCI Holdings expects core earnings to decline this year with the reduction of its stake in water utility Maynilad Water Services Inc.

For future growth, DMCI is planning to expand its power generation business.

“We want to put up another power plant,” DMCI Holdings president Isidro Consunji told reporters.

At the same time, DMCI wants to participate in more infrastructure projects under the government’s public-private partnership program, whether as a proponent or a sub-contractor.

DMCI is considering bidding for the LRT-1 expansion program and will likewise bid for the construction contracts that will be offered by whoever will undertake the Cavite-Laguna expressway and the South-North Luzon connector roads.

“Although delayed, we believe the infrastructure development programs of the Aquino government via the PPP projects, will inevitably materialize. Your company is setting its sights on the construction and engineering of these initiatives,” Consunji said.

For its power generation business under Sem-Calaca Power Corp., the rehabilitation of two units has been completed. Also, the $450-million expansion of unit 1 of Calaca, which will be completed in 2014, is expected to boost fuel cost efficiency.

Overall, DMCI expects subsidiary Semirara Mining to post flat profit this year. Higher earnings from power generation are seen offsetting the impact of softer coal prices.

Semirara has started mine development activities at the Bobog area in Antique. This site is expected to be commercially available by 2014.

The mining unit has also taken the initial step of harnessing the value of clay, another abundant resource on the island, with the establishment of Semirara Claystone.

Semirara hopes to develop this business through the commercial production of brick stones, an alternative material for the construction industry. This new business, however, is not expected to become as big as the coal mining operations.