Mirant eyes Napocor bidding

Mirant Philippines Inc., the largest private power producer in the country, is looking at the possibility of participating in the bidding of National Power Corp. (Napocor).

"We are interested in the privatization of the power plants of Napocor. We are looking at every opportunity in the country’s power sector," Mirant Philippines president J.R. Harris said.

Harris said they might consider the coal or natural gas power facilities of the state-owned power firm.

"We know how to operate natural gas and coal well as well as other energy sources," the company official said.

Mirant Philippines vice president for external affairs Paul Flake, on the other hand, said their bid for any Napocor power plant would depend on asset valuation and market forces.

"It is the price of the asset, and we believe that it is also the price of fuel that is going to do well in the next few years. Fuel becomes a big question in a privatized, competitive environment – but in a regulated environment, fuel is passed through with no profit for the owner, the customer pays for fuel in a privatized market – understanding fuel is a must," Flake said.

Mirant Philippines, a wholly-owned subsidiary of Atlanta-based Mirant Corp., has been aggressively expanding its operations in the country in preparation for its planned initial public offering (IPO).

Mirant Philippines plans on investing about P240 million to P270 million for rural electrification projects in Mindanao. In 2004, the company expected to pour in about P160 million for Mindanao-based energization program.

It has also invested about P600 million to put up a 12.5-megawatt (MW) power plant in Aklan to boost electric service in the province and avert an impending power shortage in the Visayas region.

The power firm likewise signed two electric power purchase agreements with Aklan Electric Cooperative (Akelco) to build and operate a 7.5-MW plant and a 5-MW facility in Nabas and New Washington towns, respectively, specifically to address the supply of power to Boracay. Both facilities will be operational by the first quarter next year.

Also in the Visayas region, Mirant Philippines also concluded negotiations negotiated for a-20 year energy supply contract with the Iloilo-1 Electric Cooperative Inc. (ILECO-1).

Based on the agreement, Mirant Philippines will finance, construct, operate and maintain a 10-MW diesel generating power station in Iloilo as well as rehabilitate and upgrade ILECO-1’s 13.2kV distribution lines in the municipalities of Sta. Barbara and Pavia.

Mirant Philippines has forged a joint venture agreement with Claredon Towers Holdings Inc. to acquire the 72-MW Plant of Panay Power Corp. from First Philippine Holdings and First Generation Holdings Corp. The acquisition involved the generation of an additional 40-MW capacity for the province of IloIlo.

The power firm has installed 2,000-MW of generating capacity nationwide. It operates Pagbilao and Sual coal-fired power plants and holds 20-percent stake in Ilijan natural gas-fired power plant.

Mirant Philippines also invested some P235 million ($4.3 million) to upgrade the transmission facilities of the Baguio City Economic Zone (BCEZ).

It also recently ventured into other power facilities project in Toledo in Cebu.