TeaM Energy to award Pagbilao contract in December

MANILA, Philippines - Japanese power producer TeaM Energy Philippines Corp. wants to award the construction contract for its $600-700 million coal fired plant in Quezon province this December.

The project is still a joint venture between TeaM Energy and Aboitiz Power Corp. as Lopez-led First Gen Corp. has yet to exercise its option to join the project, an executive said.

“We have already invited other people to submit a bid...We are now waiting for all of the proposals,” TeaM Energy president and chief executive Federico E. Puno said in an interview.

“Our target for the [awarding of the] engineering, procurement and construction (EPC) is this December,” Puno said.

In March, TeaM Energy, partnered with Aboitiz Power Corp. to expand the Pagbilao coal-fired power plant at a cost of $600-700 million.

The third Pagbilao power plant will increase the available electricity in the Luzon grid by 400 megawatts (MW) in 2015.

Puno earlier said that TeaM Energy is in talks with Mitsubishi for the EPC, noting that if the deal is not finalized by June, the energy firm will conduct a bidding.

The final capital expenditures of TeaM Energy, a joint venture between Japanese firms Tokyo Electric Power Co. and Marubeni Corp., will depend on the bids.

“Our preference is whatever will be the shortest way to do it,” Puno said.

TeaM Energy targets to start groundbreaking in the first quarter next year, which will allow it to operate the new power plant in December 2015.

The power plant will use the pulverized coal boiler technology, similar to the first two Pagbilao plants.

Meanwhile, First Gen has yet to exercise its option to join the Pagbilao expansion.

“They just have to tell us if they will participate and they have not told us yet,” Puno said.

“That is their option. If they have to exercise it, then we will honor it,” Puno said.