Alsons group eyes power-related ventures

Alsons Consolidated Resources Inc. is poised to take advantage of power-related business opportunities upon the passage of the Omnibus Energy bill.

The measure calls for the liberalization of the power industry and the privatization of the National Power Corp. (Napocor) including its assets in the generation and transmission sectors.

"It is creating a lot of opportunities like the privatization of Napocor, and we would like to be prepared for this," Alsons Consolidated assistant vice president Tirso Santillan Jr. told The STAR.

Santillan said they are interested in the distribution, generation or transmission sectors primarily in Mindanao where the Group is based.

In the area of power generation, Alsons has shown interest in Napocor's Genco III and Genco V.

Genco III includes the Bac-man geothermal plant, the Palangui and Loboc hydroelectric plants, the Cebu II coal-fired plant, and the Amlan, General Santos, Bohol and Panay diesel-fired power plant.

Genco V is basically the Agus hydroelectric power complex in Mindanao.

In the power distribution sector, Alsons is interested in either acquiring an existing distribution network like the electricity cooperatives or join an existing distribution system. "We could sell power also through the pulling system."

Alsons Consolidated has an existing partnership with the Aboitiz conglomerate, which operates several independent power producers (IPPs) serving the Mindanao grid with a capacity of 253 megawatts (MW). That means earnings of approximately P316 million which could easily double with the acquisition of one or two gencos from Napocor.

The Aboitiz Power Corp. plans to form a distribution company through its subsidiary, the Davao Light and Power Co. (Davao Light).

Davao Light wants to form a joint venture with the Davao del Norte Electric Cooperative (Daneco) for P301 million, equivalent to a controlling 70-percent equity share of Daneco while the remaining 30 percent will remain in the bands of the cooperative members.

Aboitiz Power is a subsidiary of Aboitiz Equity Ventures (AEV) a holding company of the Aboitiz clan, which is well placed in Southern Philippines not only in the energy sector. It also has interests in property, shipping, shipyards, industrial and commercial establishments.