Alsons eyes partners for coal power plant project

MANILA, Philippines - The Alcantara-led Alsons Consolidated Resources Inc. (ACR) is in talks with Thailand’s Electricity Generating Co. and Japan’s Toyota Tsusho Corp. for a possible partnership in a 200-megawatt coal-fired power plant project in Sarangani province.

In a disclosure to the stock exchange, Alsons said the project, being undertaken by subsidiary Sarangani Energy Corp., is aimed at helping plug the looming acute power shortage in Mindanao.

“Some Philippine and other foreign business groups have likewise expressed interest in partnering with Alsons in this and other power projects the group is envisioning which are meant to cover the looming acute power shortage in Mindanao,” the listed firm said.

Alsons said its strategy is “to replace the existing diesel plants in locations where these are now embedded with coal-fired power plants using circulating fluidized bed boilers with capacities of 200 MW in Sarangani and 100 MW in Zamboanga.”

The project, estimated to cost $280 million, is envisioned to commence commercial operations in June 2014.

The possible entry of partners in the project will be subject to approval by the board of Alsons.

At the same time, Alsons disclosed that it has awarded the engineering, procurement and construction contract for the first 100 MW power plant in Saranggani to Korean company Daelim Industrial Co.

Aside from this, Alsons has signed a power supply agreement with South Cotabaco Electric Cooperative to assure there will be an offtake for the plant’s capacity. The groundbreaking for the project is scheduled on Nov. 25.

Alsons grew its net income by 58 percent in the first nine months of the year to P402.4 million. However, it is looking to end the year with net earnings of P482.9 million, 57.6 percent lower than the P1.14 billion reported in 2010.

Gross revenues slightly went up to P2.08 billion from P2 billion a year earlier.