Incorporation of Semirara subsidiary approved

The Securities and Exchange Commission has approved the incorporation of Southwest Luzon Power Generation Corp., a wholly owned subsidiary of Consunji-led Semirara Mining Corp.

According to the incorporation documents submitted by Semirara to the Philippine Stock Exchange on Wednesday, Southwest Luzon was put up primarily to acquire, design, develop, construct, expand, invest in and operate electric power plants, and engage in the business of a power generation.

Southwest Luzon, which has an authorized capital stock of P10 billion, is also looking to invest in, operate and engage in missionary electrification as a qualified third party that will service those in the remote and far-flung areas in the country.

Of the P10-billion authorized capital stock, at least 25 percent or P3 billion has been subscribed to and at least 25 percent of such subscription or P750 million has been paid for.

Southwest Luzon is expected to undertake the construction of the additional two 150-megawatts coal-fired power units (or a total of 300 MW).

These units will be located adjacent to the existing 600-MW Batangas coal-fired thermal power plant, which is owned and operated by SEM Calaca Power Corp., also a wholly owned subsidiary of Semirara Mining.

The proposed 300-MW coal facility (Phase 1) is part of a bigger project that targets to have a completely new 1,200-MW coal-fired power generation complex in Batangas. Should the group proceed with this plan, the total capacity that can be generated from Calaca will then increase to 1,800 MW.

Recently, Semirara Mining reported that it was tapping a P14-billion project loan facility to fund the construction of the first 300-megawatt plant.

According to Semirara vice chair Isidro Consunji, the facility will have a seven-year tenor plus a three-year grace period, and will likely have an annual interest rate of less than 8 percent.