Mirant, Metrobank group to pour P1B in Visayas power projects

ILOILO CITY – Mirant Global Corp. (MGC), a joint venture between Mirant Philippines and Global Business Holdings Inc. (GBHI) of the Metrobank group, will pour in some P1 billion worth of investments as part of efforts to solve the looming power crisis in the Visayas.

The fresh capital will be used to expand the capacity of the 72-megawatt (MW) diesel-fired Panay Power Corp. (PPC) plant in Lapaz, Iloilo by another 40 MW. PPC, which started commercial operation in 2000, was acquired by MGC in June this year. Aside from PPC, MGC’s other assets include power facilities in Cebu and Mindoro.

PPC has an exclusive 25-year power purchase agreement with Panay Electric Co.(PECO) which, in turn, is the exclusive distributor of electricity in the Iloilo City with approximately 50,000 customers.

"We expect this facility to provide reliable, affordable power to help address the developmental needs of the region. It is an honor for us to do our share in helping government avert a possible shortage of power as well as promote the region’s economic and social development," Mirant Philippines vice president for external affairs and business development Paul Flake said.

Flake said this partnership is in response to government’s call to the private sector to help avert a possible energy shortage in Panay.

US-based Mirant Corp. president Marce Fuller said the joint venture also signified the commitment of the power firm to invest in the country.

"Mirant Global’s presence here in the Visayas, more than showing our commitment to grow our business in the Philippines - is a testament to our faith in the Philippine economy – and a willingness to partner with the government in improving the quality of life by doing what we do best – providing reliable, affordable energy that is essential to national development," Fuller said in her speech during the PPC groundbreaking ceremony here.

Fuller said Mirant has been supporting the Philippine government in times of crisis. "Like what we did back in 1989 when we heeded the call for private sector support to put an end to the energy crisis in the Philippines, Mirant, together with Global Holdings has decided to once again partner with government in ensuring an adequate supply of energy in Panay,"the Mirant chief said.

MGC acquired PPC from the Lopez group for P2.329 billion.

Based on the Department of Energy’s (DOE) study, a power supply shortage in Panay Island will occur by the end of 2003. On Dec. 18, 2002, DOE created the Panay Task Force, an ad hoc committee mandated to explore and evaluate solutions that will resolve the impending power crisis in the island.

So far, Mirant is the only private company that has made a firm commitment to the DOE to install up to 40 MW of additional capacity in Panay.