Global Business Power subsidiary invests P10B to expand Cebu plant

ANILA, Philippines - A subsidiary of Global Business Power Corp. (GBPC) of banking tycoon George S.K. Ty is investing more than P10 billion to expand its coal-fired power plant in Cebu.

The power generator is on track to starting the coal plant’s commercial operations in 2014, the company said in a disclosure.

“As a testament of our continuing commitment to the Visayas region, we are investing an additional P10.2 billion to replace Toledo Power’s existing coal facility with the latest clean coal technology to provide more efficient power supply,” said GBPC chairman Francisco Sebastian.

GBPC subsidiary Toledo Power Corp. broke ground for the 82-megawatt (MW) clean coal-fired power plant expansion project on Sunday.

Sebastian said the same clean coal technology is being used in Cebu Energy’s 246-MW and Panay Energy’s 164-MW power plants.

To date, Toledo Power operates a 66-MW coal plant in Daanlungsod and a 40-MW power plant in Carmen, both in the province of Cebu.

“The project is intended to supply the electric power requirements of Carmen Copper Corp. beginning Dec. 26, 2014,” GBPC said.

Carmen Copper, a subsidiary of Atlas Consolidated Mining and Development Corp., will need additional supply as it expands its mineral production capacity due to high metal prices.

GBPC started its business in the Visayas in 2002 following its acquisition of a 72-MW diesel plant from the Lopez Group and Cebu-based Toledo Power Co.

Toledo Power was initially built to power the Atlas mines in the 1960s until its closure in 1990’s.

GBPC, which is part of the GT Capital Group, owns coal and bunker fueled plants with a generating capacity of 633 MW mainly in the islands of Panay and Cebu.

GBPC is also looking at expanding in electricity-starved Mindanao, which needs another 300-400 MW in the next three years.