A Brown unit taps Canadian firm for Western Visayas power plant

MANILA, Philippines - The energy subsidiary of listed holding firm A. Brown Co. Inc. has appointed a Canadian construction firm for engineering works in its 200-megawatt (MW) power plant in Western Visayas.

“Palm Concepcion Power Corp., A. Brown’s subsidiary and the proponent of the proposed coal-fired power plant project in Concepcion, Iloilo, recently signed an agreement with one of the leading engineering and construction groups in the world, SNC-Lavalin Inc.,” the company said in a disclosure.

Roel Z. Castro, Palm Concepcion president and A. Brown vice-president, and Glenn R. Frazier, vice-president for Asia Pacific and managing director of SNC-Lavalin (Thailand), signed the agreement on March 30.

 “We trust that as the project’s owner’s engineer, SNC-Lavalin will be bringing in their expertise and experience that they are known for worldwide,” Castro said.

In July, A. Brown announced it will spend $200 million or roughly P8.5 billion for the 200-MW clean coal-fired power plant. The power plant, which will be commissioned in the third quarter of 2015 for phase one and fourth quarter of 2016 for phase two, will supply the power needs of the Visayas grid.

Frazier said SNC-Lavalin will work in synergy with existing workers in the power plant, which will provide stable power in Visayas.

SNC-Lavalin, which was founded in 1911, is one of the world’s leading engineering, procurement, construction and related technical services organizations. To date, SNC-Lavalin no operations in about 100 countries.

“As the owner’s engineer, SNC-Lavalin will be providing technical advisory services from engineering stage to completion of the power generation project,” A. Brown said.

“Its services will cover detailed engineering that will include review and evaluation of EPC specifications, system’s design parameters and operating features and development of conceptual layouts, among others,” it added.

SNC-Lavalin is recognized internationally in engineering and construction in the fields of hydroelectric, nuclear and thermal power generation, power system studies, power sector reform, transmission and distribution projects.

In February, the Department of Energy upgraded the coal-fired power plant to “committed” stage from “indicative” stage.

In “committed” power projects, the proponents have already complied with necessary permits and clearances of various agencies and are in the process of financial closing. Meanwhile, “indicative” power projects are those under different stages of project development like feasibility study, which is prior to financial closing.

A. Brown – the investment arm of businessman Walter W. Brown – earlier said that BDO Capital and Investment Corp. will arrange the debt financing requirements for the project. Financial closure is expected in the second quarter next year.

In November 2010, A. Brown, through subsidiaries Palm Thermal Consolidated Holdings Corp. and Panay Consolidated Holdings Corp., bought DMCI Power Corp.’s planned 100-MW coal-fired power plant in Iloilo.