Zamora Group mulls huge Mindanao hydropower plants

MANILA, Philippines - The group of mining magnate Salvador Zamora is intensifying its entry into the power industry with plans to put up big hydroelectric power plants in Mindanao, informed sources said.

An industry source said Zamora has created a vehicle, Tranzen Energy Group, to facilitate investments in power-related businesses. 

It was learned that the proposed hydro project, with a capacity of around 230 megawatts (MW), is set to deliver power to Mindanao by 2014.

According to sources, the Zamora Group is focused on putting up greenfield hydropower projects. With this strategy, the mining tycoon wants to focus on new projects rather than in bidding for the power contracts and power generation assets of National Power Corp. (Napocor).

“Mr. Zamora believes there are a lot of opportunities in the power sector,” the source said.

The Zamora Group has already ventured into the power business when it constructed Montalban Methane Power Corp. through Tranzen Group Inc., the holding company of the Zamora Group which has investments in transportation and tourism.

Montalban Methane is 60 percent owned by Tranzen Group and 40 percent by Carbon Assets Fund of Cayman Island, a majority owned company of United Kingdom-based Carbon Capital Markets.

Montalban Methane’s power plant in Rizal is estimated to cost around P1.5 billion. The plant recovers harmful methane gas from the Rodriguez garbage dumpsite to generate electricity.

Based on its plans, Tranzen will put up similar methane projects in four other sites in the Philippines: Angeles City, Olongapo City, Davao City and San Mateo, Rizal.

The group earlier tied up with Banyan Tree Holdings Ltd. for the construction of a $200-million premier integrated island resort project – Isla Diwaran – in Coron, Palawan.

Isla Diwaran is targeted to open in 2012 with a total of 600 rooms, spas, a marina, and a town center with recreation facilities, retail and food and beverage outlets.

At present, Zamora has interests in Oriental Vision Mining Philippines Corp. and Hinatuan Mining Corp. He is likewise an investor in Universal LRT Corp. which is undertaking the MRT-7 project.