Metrobank may join bidding for Napocor’s generating assets

The Metrobank Group of taipan George Ty is looking at the possibility of joining the bidding for some generating assets of the state-owned National Power Corp. (Napocor).

In an interview, Ty said "we have been always looking for great opportunities in the power sector."

Ty said they may probably look at the assets based in the Visayas where one of its major investments in the power sector is located.

Ty said they may also consider to expand their investment in the province because of the looming power shortage in the area.

"We have to access the problem and situation (in the Visayas area) first before we can make the necessary investment," Ty said.

The Metrobank Group, through Global Business Holdings Inc. and Mirant Philippines formed a joint venture company – Mirant Global Philippines Corp., to acquire the 72-megawatt Panay Power Corp.

An estimated $1 million in investment was needed for every one megawatt of power plant capacity to be built or acquired.

Metrobank’s move to invest in the power sector has also prompted another major investment banking firm, Ayala Group, to create a vehicle for its power-related investments.

Two projects are now in the pipeline – a 5-MW project in New Washington, Aklan, and another 7.5-MW facility in Aklan.

The acquisition of Panay Power in 2004 boosted the group’s earnings to a record-high of P1.4 billion.

Mirant Global is expected to invest some $400 million (P22.4 billion) from 2004 to 2009 for the expansion program of Toledo Power Plant in Toledo, Cebu and Pagbilao Power Plant in Quezon.

Mirant is currently completing its 92-megawatt (MW) power project in Iloilo City worth P1 billion as well as its 17.5 MW power plant project in Aklan worth P600 million.

Mirant Philippines is the largest private producer of electricity in the country. It owns and operates over 2,500 megawatts of generating capacity.