Abacus seeks review of BacMan pipeline proposal

MANILA, Philippines - Publicly-listed Abacus Consolidated Resources & Holdings Inc. is seeking the reconsideration of the Philippine National Oil Co. (PNOC) of its unsolicited proposal to develop the 100-kilometer natural gas pipeline project from Batangas to Manila (BacMan).

In a disclosure to the Philippine Stock Exchange, Abacus said another option it is looking at is to participate in the bidding for the project in case it comes earlier.

Abacus said there have been discussions with PNOC on its unsolicited proposal for the joint venture with foreign entities. It explained that last May, the company was of the view that it was not the opportune time to complete the discussions, as well as the submissions that were being requested, in view of the national elections and the imminent changes in incumbent government officials.

“The PNOC, it seems, felt it was necessary, despite our requests for deferment, to make final recommendations and decisions on the matter, which explains the information on PNOC’s rejection of our unsolicited offer which we have just officially confirmed but which is beyond the control of the company,” Abacus said.

On top of this project, Abacus has also submitted a P60-billion unsolicited proposal to develop the Laiban Dam as an alternative source of water for Metro Manila’s households. The joint venture proposal, which was offered to Metropolitan Waterworks and Sewerage System, involves the construction of the Laiban Dam in Tanay, Rizal to supply Metro Manila around 1.9 billion liters of water per day and supply the irrigation requirements of the agricultural sector of neighboring areas.

Abacus also seeks to build a 30-megawatt hydropower plant to alleviate the projected water supply shortage for the Luzon grid, which is expected to incur a supply deficit of 3,000 MW by 2013.

The proposed project also involves low-cost housing for families to be displaced by the construction of the dam, which will be completed within 60 months from start of construction.

Abacus, owned by a group of businessmen led by Hermilando Mandanas, has tapped Sinohydro Corp. Ltd. of China as its partner for the Laiban Dam project, a pro-government initiative that seeks to prepare for the inevitable deterioration of Angat Dam in Bulacan – the only water source for Metro Manila.

Sinohydro is a company registered in the People’s Repubic of China mainly engaged in water conservation and hydropower industries, building, civil infrastructure, mechanical and electrical plant manufacturing and installation. It has been the backbone of China’s efforts to harness and develop rivers accounting for 70 percent of China’s water conservation canal and irrigation water treatment and water supply projects.

With a manpower of 130,000, Sinohydro had total assets of $2.14 billion as of end-December last year.