Alsons studies investment options on power plant project

Alsons Consolidated Resources Inc. (ACR) is studying options on its possible investment in a 200-megawatt (MW) coal-fired power plant in Maasim, Sarangani.

In a disclosure to the Philippine Stock Exchange, ACR said the project team would solicit from prospective suppliers and contractors preliminary proposals regarding various aspects of the project, estimated to cost at least $450 million.

Earlier reports said the proposed project will be undertaken by Conal Holdings Inc., a joint venture between the Alcantara family’s ACR and Thailand’s Egko.

The proposed coal-fired power plant aims to initially generate 200 MW of electricity and help stabilize the Mindanao power grid by 2011, with two incremental expansions of 350 MW over a period of 15 years.

The first phase of the project is expected to take three years to complete.

ACR, through unit Alto Power Management Corp., is also planning to build three hydropower plants worth an estimated P3.8 billion in Negros Occidental. The proposed facilities, which will take four years to construct, will have an aggregate capacity of 40 MW.

Based on the feasibility study presented to the local government, the proposed tarriff rate is no more than P4 per kilowatt-hour (kwh) before any adjustments for inflation and escalation. In comparison, Central Negros Electric Cooperative currently pays almost P5/kwh including transmission charges for power sourced from the National Power Corp.

Moreover, ACR is teaming up with Energy Generating Public Co. of Thailand and Toyota Tsusho, the trading arm of the Toyota Motor Group, to jumpstart its diversification into the bio-ethanol business. The project, estimated to cost around $2.4 million, will involve the development of a 100,000 liters per dayplant, slated for commercial operations by early 2011.

ACR is hoping to capitalize on the anticipated growth in demand for fuel with the mandatory five percent blend of bioethanol by May 2009.

The company also has a wholly-owned subsidiary, Alsons Power International Ltd., a British Virgin Island-registered company which handles the development of the power plant projects of ACR.

ACR’s property development business, meanwhile, is handled by its subsidiary, Alsons Land Corp. which is primarily involved in the development of Eagle Ridge Golf and Residential Estate and the Lima Technology Center.

ACR conducts its product distribution business through Market Developers Inc., and its mining business through ACR Mining Corp.

Aside from the bioethanol plant, ACR is likewise considering developing amining property in Davao del Norte to take advantage of the surging prices ofmetals worldwide. It is planning to participate in a large copper and gold projectin South Cotabato.