MANILA, Phillippines – The units of power distributor Manila Electric Co. (Meralco) and the Metrobank group of tycoon George Ty are in a joint venture to build 4 coal-fired power plants in Mindanao.
In a press interview on Tuesday, January 29, Meralco president Oscar Reyes confirmed the deal between power development unit Meralco PowerGen Corp. and Ty-led Global Business Power Corp. Both made separate disclosure to the stock exchange that their respective boards approved the deal.
“There are 4 projects, some of the projects are around 100 megawatt. They should be mainly coal-fired power plants,” said Reyes.
The two will enter into a Memorandum of Understanding. Mindanao is power-starved and rolling blackouts are experienced in some areas.
“Meralco PowerGen continues to explore opportunities with the goal of putting up power plants to help address the need for a reliable, sustainable and competitively-priced supply of power,” it said.
“Meralco is trying to help address the requirement for adequate reliable power. So if we can help in meeting the needs with very fuel efficient new technology plants and with credible partners then we can contribute our own expertise, resources,” it added.
This is Meralco’s first project outside Luzon. Through its power arm, it is developing a diversified power portfolio of up to 2,500 megawatts until 2020. Meralco PowerGen has taken a majority stake in Redondo Peninsula Energy Inc., which is developing a 600 megawatt coal project in Subic.
Meralco is the country’s largest power retailer operating in Luzon. It is controlled by the group of businessman Manuel V. Pangilinan and the country’s largest conglomerate, San Miguel Corp.
Global Power, on the other hand is the 4th biggest power player in the Philippines with total installed capacity of 629 megawatt. Its power plants in Visayas account for 12.3% of total total capacity.
(INFOGRAPH: Top power players in the Philippines) – Rappler.com
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