Alsons Consolidated Resources Inc. (ACR) and Global Business Power Corp. (GBP) have signed an agreement that formalizes a partnership through the former’s power generation holding company in Mindanao.
The agreement allows GBP to hold a 50-percent stake in Alsons Thermal Energy Corp. (Atec), which is ACR’s holding firm for coal-fired assets.
Atec controls a 75-percent stake in the 210-megawatt coal-fired power plant of Sarangani Energy Corp. located in Maasim, Sarangani. ACR’s long-time Japanese partner, Toyota Tsusho Corp., will keep its 25-percent equity in this project.
Also, Atec has full equity in San Ramon Power Inc. (SRPI), which is developing a 105-MW coal-fired plant in Zamboanga City.
ACR chair Tomas I. Alcantara said in a statement that the partnership between ACR and GBP — given a green light by the Philippine Competition Commission —combined ACR’s knowledge of the Mindanao power market with GBP’s track record as the leading power producer in the Visayas.
“We believe that this partnership will greatly benefit power consumers particularly in light of the planned interconnection of the Mindanao and Visayas grids which we strongly support,” Alcantara said.
“We look forward to bringing together the technical expertise and unique strengths of our two organizations in ensuring power security in the Southern Philippines,” he added. “The synergy within Atec will come to the fore once interconnection of the grid makes it possible for power consumers in the Visayas to be supplied from Mindanao and vice versa.”
Alcantara said the team up would also give ACR the opportunity to pursue “with greater intensity” its other energy-based projects outside of the Atec umbrella, particularly its renewable power generating plants in Mindanao and Western Visayas.
Outside of the Atec umbrella, ACR operates three diesel-power plants with an aggregate capacity of 258 MW in different parts of Mindanao.
Before the end of 2017, ACR will commence construction of the P3.7-billion, 15.1-MW run-of -river hydroelectric power project at the Siguil River basin in Sarangani, which will mark ACR’s entry into the renewable energy space.
“It (the partnership) will likewise allow ACR to accelerate its foray and entry in other energy-related enterprises in the Southern Philippines and eventually other parts of the country, including the smaller islands with promising growth in power demand,” he said.