Toyota Tsusho finalizes 25% buy-in in Sarangani Energy

MANILA, Philippines - Toyota Tsusho Corp. has finalized its purchase of a 25 percent stake in Alcantara-led Sarangani Energy Corp., which will put up a 210-megawatt coal fired power plant in Southern MIndanao.

In a disclosure to the Philippine Stock Exchange, Alsons Consolidated Resources Inc. said the agreement was signed by its chairman Tomas Alcantara and Shinichi Ushijima, general manager for power project development of Toyota Tsusho.

Located in Maasim, Sarangani province, the plant  is estimated to cost $310 million, 30 percent of which which will be spent over the next three years to be shared by ACR and Toyota Tsusho on a 75:25 basis.

The 70 percent balance will come from a project financing facility that has yet to be finalized.

The first phase of the plant will generate 105 MW of electrical power.  It is expected to begin operations by August 2015.

Sarangani Energy has a power sales agreement with the South Cotabato II Electric Cooperative (SOTECO)  to provide up to 70 MW of electricity to the latter’s customers.  SOTECO is the power distribution utility servicing more than 133,000 households in the entire province of Sarangani, Gen. Santos City and two key municipalities in South Cotabato.

The plant is intended to be part of a long-term solution to the current power shortage in Mindanao.

Toyota Tsusho, a publicly-listed trading conglomerate, is present in over 60 countries and is engaged in various businesses which include power generation, warehousing and logistics services, retail and sale of Toyota vehicles and parts, manufacture and sale of metas, machinery and heavy equipment, and import and export of petroleum, coal, agricultural products and other commodities.

Aside from the Sarangani plant, the Alcantara Group operates the 100 MW Western Mindanao Power Corp. bunker-fired power plant in Sangali, Zamboanga City and the Southern Philippines Power Corp.’s 55 MW bunker-fired power plant in Alabel, Sarangani.

The Alcantara Group is also developing the San Ramon Power  plant in Talisayan, Zamboanga City which will have the capacity to generate up to 105 MW of electricity for Zamboanga City and nearby area.  The plant is expected to be operational by 2016.

In the first quarter, the group, through unit Mapalad Power Corp., bagged the right to acquire the 102 MW Iligan diesel plant.  The transfer of ownership is currently undergoing procedural review by the Commission on Audit. Rehabilitation and operation of the plant will commence once the transfer is finalized.

Apart from the power project, the group is also engaged in property development, aquaculture, agribusiness and services.  It has been an active player in the economic development of Mindanao and the rest of the Philippines for over 50 years. – With Neil Jerome Morales