DMCI Power to pursue expansion of 600-megawatt Calaca coal facility

MANILA, Philippines - DMCI Power Corp., the power generation arm of the Consunji family, will pursue plans to expand the capacity of the 600-megawatt (MW) Calaca coal-fired power facility.

DMCI Power president Nestor Dadivas said they are now finalizing the investment program for the expansion of the coal-run power plant.

The DMCI official, however, said the amount they would invest would greatly hinge on the power situation in Luzon.

“We are studying the power demand and supply situation in Luzon,” he said.

On top of the planned expansion program, DMCI Power is also in the midst of rehabilitating the Calaca power plant to increase its capacity by an additional 130 MW.

Earlier, the power firm said it would set aside some $60 million for the rehab program.

Dadivas said the ongoing rehabilitation is expected to be completed by February 2011.

Based on the rehab plan, the company would jack up the capacity of the Calaca power facility to 470 MW from the current 340 MW.

According to Dadivas, the two units of the Calaca power facility are currently running at a combined capacity of only around 350 MW. He also noted that the two units are sometimes not capable of running at the same time.

At present, the Calaca facility consists of two 300-MW generating units and is primarily designed to run as a base-load plant.

It is also designed to utilize local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings.

In July 2009, DMCI Holdings Corp., the parent firm of DMCI Power, won the Calaca plant in a bidding with an offer price of $361.7 million.

DMCI Power’s investment in Calaca is strategic as DMCI Holdings owns 56 percent of Semirara, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.

Aside from mining DMCI Holdings is also into the construction business, running the construction component companies, and related interests of the Consunji family. Its core businesses include construction, real estate and coal mining.