A consortium composed of Manila Electric Co. and several Japanese firms has signed a joint venture agreement with the Bases Conversion and Development Authority (BCDA) for the development of a P1-billion electricity distribution system for the New Clark City in Pampanga.
Meralco has a 60-percent stake in the consortium that includes Marubeni Corp., The Kansai Electric Power Co. Inc. and Chubu Electric Power Co. Inc.
In a regulatory filing, Meralco said under the agreement, the so-named Meralco-Marubeni consortium would form a special purpose company that would hold a 90-percent equity in the deal with BCDA.
“The (joint venture company) shall then pursue and undertake the financing, design and engineering, establishment, construction, development and operation and maintenance of the electric power distribution system in New Clark City,” Meralco said.
According to Meralco senior vice president Alfredo Panlilio, the consortium’s special purpose company would be called Shin Clark Power Holdings Inc.
With the joint venture deal with BCDA already signed, the partners would now have to obtain a franchise from Congress, which would be an initiative of the state agency in charge of former American military bases.
The transaction would also need an approval from the government’s antitrust body, the Philippine Competition Commission.
Meralco PowerGen Corp. president Rogelio L. Singson earlier mentioned the project at New Clark City would cost about P1 billion.
According to Singson, plans are currently evolving in terms of electrifying Athlete’s Village there. The Philippines will host the Southeast Asian Games in December this year.
“For the SEA Games, we are looking at a demand of 10 megawatts to 14 megawatts,” Singson said.
He added BCDA was pushing for underground cabling for power distribution similar to what the Bonifacio Global City has, since the intention was to make the new development in Pampanga a “smart city.”
New Clark City would also be hosting a new national government center, but Singson said there was relatively not much going on on that front compared to the sports facilities.
“It’s all focused on the Athlete’s Village even if only two events will be held there—track and field and swimming,” he said.