Alsons sets $1.35B in power projects

MANILA, Philippines—Alsons Consolidated Resources Inc. (ACR), the publicly listed firm of the Alcantara group of companies, is lining up as much as $1.35 billion in energy projects until 2017 amid booming demand for electricity in Mindanao, where the group’s pipeline will be focused.

“Our projects already figure up to $450 million until 2016 or 2017. The 400-MW Tampakan (power project) will involve $900 million in project cost. If Tampakan is realized, we will add it to the $450 million,” ACR chair and president Tomas I. Alcantara told reporters at the sidelines of the company’s stockholders’ meeting.

The Tampakan power project will be put up to support the electricity needs of the $5.9 billion Tampakan copper-gold mining project of Sagittarius Mines Inc., which has signed up Alsons Consolidated as the exclusive energy facility provider.

“The mine itself is under technical development. We have a framework deal giving us exclusive rights to put up the power plant,” Alcantara said. Alsons Consolidated intends to fund the Tampakan power project through project financing.

The portion of the cost to be loaned would depend on the appetite of the equity market, Alcantara said. The company was also open to having a partner in the project, he said.

ACR is gearing up to double the current generating capacity of its subsidiaries to make it a supplier of one fourth of Mindanao’s power demand by 2016. “With two plants going up in Sarangani and Zamboanga, we are looking forward to generate 463 MW—more than one-fourth of the Department of Energy’s projected 2016 Mindanao peak power demand of 1,829 MW,” Alcantara said.