Meralco, Japan partners investing P6.3B in Clark

Manila Electric Co. and its Japanese partners expect to invest a total of P6.3 billion over the next 25 years in the power distribution system of New Clark City in Pampanga.

Meralco said in a disclosure the project needed approval of capital expenditures and power rates as well as a certificate of public convenience and necessity from the Energy Regulatory Commission.

Last January, the Bases Conversion and Development Authority (BCDA) issued a notice of award to the Meralco-led consortium—which includes three Japanese firms—related to the conduct of financing, design and engineering, establishment, construction, development and operation and maintenance of the power distribution system in New Clark City.

The deal is good for an initial period of 25 years, renewable for another 25 years.

Meralco has a 60-percent interest in the consortium and Marubeni Corp. has 20-percent while each of Kansai Electric Power Co. Inc. and Chubu Electric Power Co. Inc. has 10 percent.

The Meralco-Marubeni consortium intends to form a special purpose company called Shin Clark Power Holdings Inc., which will have a 90-percent stake in the joint venture with BCDA.

Meralco reiterated that the transaction also needed the approval of the Philippine Competition Commission as well as a franchise issued by Congress.

“The transaction is an opportunity for Meralco to participate in the development of New Clark City and generate additional revenues in the operation of its electric distribution system there,” Meralco said.