DMCI plans rehab of Calaca plant

MANILA, Philippines - DMCI Power Corp., a unit of DMCI Holdings Inc. of the Consunjis, is planning to rehabilitate the 600 megawatts (MW) Calaca coal-fired power plant in Batangas

DMCI Power president Nesto Dadivas said the rehabilitation will enable the company to jack up the power plant’s capacity by 130 MW.

Dadivas said they have decided to just rehabilitate the plan rather than expand it.

He said they see the need to maximize first its existing capacity.

He noted that the plant is running only at 340 MW.

“(We) will rehabilitate the plant to improve reliability and capacity performance,” he said.

Dadivas said specifically the rehab plan will involve major overhaul of one unit of the Calaca to raise its capacity to 470 MW from 340 MW at present.

“The rehab program involves major rehab of one plant at a time of six to seven months,” Dadivas said.

According to Dadivas, they are currently firming up the funding for the rehab program.

“We’re still finalizing the project cost for the rehabilitation program but it will be financed through a combination of loan and internal cash generation,” he said.

DMCI Holdings paid $150.79 million as its downpayment for the purchase of the power facility located in Calaca, Batangas. Its bid offer was $361.7 million.

The power plant will be operated by Sem-Calaca Power Corp., a new company recently established by Semirara Mining Corp., the coal mining arm of DMCIHI.

DMCIHI owns 56 percent of Semirara, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique. Semirara currently supplies coal to the Calaca facility.

The Calaca plant will utilize 100 percent Semirara coal. The plant will utilize about 1.6 million metric tons of coal annually.