Alcantara group inks supply deal with Mindanao power co-ops

MANILA, Philippines - Sarangani Energy Corp. (SEC), a subsidiary of the Alcantara Group’s publicly-listed holding firm Alsons Consolidated Resources (ACR), signed recently power supply agreements with some electric cooperatives in Mindanao.

SEC entered recently into two separate power sales agreements (PSAs) with the Agusan Del Sur Electric Cooperative, Inc. (Aselco) and the Davao Del Norte Electric Cooperative, Inc. (Daneco) in addition to a power supply agreement it had already signed with the South Cotabato II Electric Cooperative, Inc. (Socoteco II) last year.

Under the electricity supply agreements, Aselco will be provided with 10 megawatts of electricity while Daneco will be provided 15 megawatts from SEC’s state-of-the-art coal-fired power plant in Maasim town in Sarangani province once the plant starts operations in 2015. The first phase of the SEC power plant will be capable of generating up to 105 MW of power, and this is projected to increase to 210 MW when the second phase of the plant comes online.

Aselco is the power distribution utility distributing electricity to more than 56,000 consumers in the province of Agusan del Sur. The Aselco service area covers all 13 municipalities of Agusan Del Sur and Bayugan City - the province’s only city.

Daneco distributes electricity to over 129,000 households and establishments in the cities of Tagum and Samal and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao Del Norte as well as the entire Province of Compostela Valley. 

Early in 2011, SEC signed a PSA with Socoteco II that allocates 70 MW of electricity from the Maasim power plant. Socoteco II supplies electricity to more than a million consumers in General Santos City, the entire province of Sarangani and two towns in South Cotabato.

These agreements were forged in anticipation of a power supply shortage in Mindanao by 2014 due to the lack of power generating facilities to supply the growing power demands of the island’s expanding population.

The Alcantara Group is building a second coal-fired power facility in Zamboanga City and operates two diesel-fired power plants in Zamboanga City and Alabel, Sarangani. Aside from power generation and power plant management, the group is engaged in aquaculture and agribusiness, real property development, and services.