MANILA, Philippines - DMCI Power Corp., the power generation unit of the Consunji Group, is proceeding with the first phase of the expansion project for the 600-megawatt (MW) Calaca coal-fired facility.
Nestor Dadivas, DMCI Power president, said they are now in the process of building two of the four 150-MW units of Calaca.
He said they expect the groundbreaking of the initial phase within the year.
The official said they would be raising the funds for the expansion program through project financing from various financial institutions.
Dadivas earlier said the investment level would greatly hinge on the power demand 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 middle of rehabilitating the Calaca power plant to increase its capacity by an additional 130 MW.
Parent company DMCI Holdings paid $150.79 million as 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 DMCI Holdings.
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. 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.