Keilco eyes generation assets of Napocor

Kepco-Ilijan Corp. (Keilco), a subsidiary of power giant Korea Electric Power Corp., has expressed interest in the generation assets of the National Power Corp. (Napocor).

"We are very keen to participate in the auction," Keilco vice president Song-Chang Hyun said, in a recent interview.

Hyun said they are just waiting for the approval of the final version of the implementing rules and regulations (IRRs) of the Electric Power Industry Reform Act (EIRA) which will spell out the rules of the game.

"We need to know the results of the review of the IRR before we make any move," he said.

The Kepco official said they are studying every generation asset of Napocor. "We will choose when we are done with our evaluation," he said.

The Kepco Group has been in the country through various power-related businesses.

In particular, Kepco is part of the consortium that built the $800-million Ilijan natural gas combined cycle power plant project.

The 1,200-MW Ilijan project is one of a number of power plants that will be powered by natural gas from Malampaya.

The Ilijan project is expected to contribute to both the National and Local government and economy as estimated P28 billion ($555 million) over the life of the project or in 25 years.

The Keilco, as a project company, is a joint venture among Korea Electric Power Corp. (Kepco), Napocor, and a number of Japan-based power firms which include: Mitsubishi Corp. of Japan, Southern Energy of the US and Kyushu Electric of Japan.

Napocor expects to generate some $5 billion from the sale of its generation assets.