First Metro Investment to acquire five more power plants

After acquiring three power plants this year, First Metro Investment Corp. (FMIC) is planning to acquire five more power facilities in 2004 as the company expands its out-of-grid niche in the power sector.

Sources revealed yesterday that FMIC is eyeing at least five power plants in Palawan, Cebu and other areas in the Visayas region through its joint-venture company with Mirant Philippines, Inc.

Company sources said the acquisitions will be coursed through Global Holdings Inc, the joint-venture company formed by FMIC and Mirant. FMIC owns 51 percent of this holding company and the rest is owned by Mirant which also acts as FMIC’s technical partner.

According to sources, the plants will be operated by Mirant which already operates the Sual coal power plant in Pangasinan and another coal power plant in Pagbilao, also in Pangasinan.

This year, GHI acquired the Sunrise power barge which had already been foreclosed by the banks. Sources said GHI spent a total of P5 billion for its 2003 acquisition and it would spend significantly more in 2004.

"We’re not acquiring these power facilities in order to flip them over and sell them," the source said. "We plan to operate them ourselves that’s why we linked up with Mirant as our technical partner."

The source said FMIC and Mirant are focusing on under-served areas in the country which are not directly connected to the power grid operated by the National Power Corporation.

The source said the FMIC is convinced that there is an upside in the power sector, especially in under-served areas where economic activities are only waiting for a stable, reliable and affordable power supply in order to kick off.

FMIC said GHI is negotiating with a number of power producers in the Visayas region where sources said the economic prospects are good and indicate an increase in power demand.

Formerly known as Solidbank Corp., FMIC has since been restructured and is now a major provider of investment banking services, securities brokerage and other financial services.

FMIC is also involved in equity and debt underwriting, commercial paper and government securities dealership, loan syndication and arrangement, project financing, financial advisory and investment management, securities brokerage and other financial services.