MANILA, Philippines – The Ayala group has formed a triumvirate deal with the groups of A. Brown and Jacinto Ng for a P12.5 billion power plant in Iloilo that will use clean coal technology.
In separate disclosures to the stock exchange on Monday, November 5, the groups said they have finalized and executive a shareholders agreement for the building of a 135-megawatt circulating fluidized bed thermal coal-fired power plant meant to add power supply in Panay island by 2016.
The corporate vehicle for this venture is Palm Concepcion Power Corp., which was initially acquired by listed A. Brown Group’s subsidiary Palm Thermal Consolidated Holdings Corp. in November 2010 from Consunji-led DMCI Power Corp.
That marked the entry of the group led by Walter W. Brown, a long-time mining executive and former president of power transmission firm National Grid Corporation of the Philippines (NGCP), into the energy sector.
Palm Conception and NGCP have previously inked an agreement for the dispatch of the Iloilo plant output through the transmission facilities by 2016, the year when the Visayas grid is expected to need additioanl power supply.
The A. Brown unit and Ayala’s subsidiary for its power-related investments, AC Energy Holdings Inc., inked a deal in October to pursue the Iloilo project.
Ayala’s AC Energy earlier tied up with Trans-Asia Oil and Energy Development Corp to build a coal-fed facility in Batangas, and pursued the wind project in Ilocos province.
The 3rd investor in this Iloilo power plant deal is Jin Navitas, which is led by industrialist Ng who controls mid-sized Asia United Bank and biscuit manufacturer Rebisco Group. – Rappler.com
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