LT Group expands to energy
TYCOON Lucio Tan-led conglomerate LT Group Inc. (LTG) is looking to diversify its revenue stream and debut in the energy sector with a potential investment in an 80-megawatt wind farm in Pililla, Rizal.
Talks are ongoing with Alternergy Wind One Corp.—a company led by former Energy Secretary Vincent Perez—for a partnership in this new wind farm project in Rizal, LTG president Michael Tan told reporters after the company’s annual stockholders’ meeting yesterday.
“We’re looking at expanding our portfolio,” Tan said, referring to renewable energy projects.
At present, Tan said LTG had a 2-MW solar farm in the Batangas facility of Asia Brewery’s Absolute Distilled Drinking Water production hub.
In Bacolod City, investee firm Victorias Milling Corp. is building a 40-megawatt biomass plant that may come on stream by the end of next year, Tan said.
For the wind farm project in Rizal, Tan said discussions about the partnership with Perez’s group were ongoing.
Alternergy, which has a wind farm project in the area, is keen on expanding the farm.
Tan estimated that it may take a year and a half for a new wind farm to be built, once the agreements are finalized.
As part of the search for new growth drivers, LTG is also keen on participating in the Duterte administration’s infrastructure projects to be bid out using the public-private partnership (PPP) framework.
In particular, he said the group would be interested to participate in airport projects.
If the Laguna Lakeshore project were broken up into smaller projects, Tan said LTG would likewise be interested.
This year, LTG is looking at capital expenditures of about P10 billion, about the same level as last year. The amount will fund expansion programs in the beverage sector, building construction and land acquisition for the property sector, and technology upgrades for the bank.
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