In an interview, Gatchalian expressed confidence that BPC’s power problem is nearing resolution with the sale of Mirant Philippines by its American shareholders.
Mirant Philippines has already started accepting bids since Nov. 24 and is scheduled to close/stop accepting bids on Dec. 15.
Gatchalian is optimistic that with a change in ownership, BPC would finally be able to secure the power its needs to operate.
Gatchalian had previously complained that the re-operation of the BPC is is being stalled by the refusal of power producer Mirant to provide power to the petrochem firm.
Mirant, being a US firm, is banned by the US government from engaging in any business transaction with any firm that has Iranian equity.
The National Power Co. of Iran is acquiring 60 percent of BPC, while the group of Gatchalian, through the Metro Alliance Group, holds 40 percent of BPC.
The BPC has been recommissioned at a cost of $20 million and is ready to operate.
However, the buy-in by NPC International has not been concluded specifically because of the power problem.
The Iranian payment, Gatchalian said, is already deposited in Equitable-PCI Bank (which has been acquired by Banco de Oro).
BPC is hoping to resolve the power problem so that it can resume operation by the first quarter of 2007 with an initial production capacity of 270,000 metric tons per year.
BPC’s maximum production capacity, though, is 400,000 MT/year., all for domestic consumption.
The Metro Alliance Group acquired in 2005 the shares of British Petroleum (38.5 percent), Malaysia’s Petronas (38.5 percent) and Japan’s Sumitomo (six percent).
Gatchalian is the majority shareholder of Metro Alliance.
BPC started operating in 2000 and had a capacity of 200,000 metric tons.
Unfortunately, because of the global glut in petrochemical resin production, the local petrochem players have been under a constant struggle to remain afloat.