Meralco, Global Business Power tie up for 4 coal power plants
MANILA, Philippines - Meralco PowerGen Corp., the power generation subsidiary of Manila Electric Co. (Meralco), will team up with Global Business Power Corp. (GBPC) of the Metrobank Group for four coal-fired power plants mainly in Mindanao.
GBPC is a joint venture between Global Business Holdings Inc. and First Metro Investments Corp. of the Metrobank Group. It has power plants in the Visayas region and Mindoro islands.
“There are four power plants and they should be mainly for coal,†Meralco president Oscar Reyes told reporters yesterday.
“Meralco PowerGen Corp. and Global Business Power Corp. will jointly pursue and evaluate potential power generation projects largely in the Mindanao area under a memorandum of understanding (MOU) that will be entered into shortly by both parties,†he said.
“Meralco PowerGen continues to explore opportunities with the goal of putting up power plants to help address the need for a reliable, sustainable and competitively-priced supply of power,†Reyes added.
Reyes said under the planned partnership, GBPC will develop the power plants and Meralco would have the opportunity to invest.
“Effectively, they are developing the projects and we will have the opportunity, if we so wish, to invest with them,†he said.
Reyes also said the company was negotiating with all power companies to explore joint venture opportunities.
The power generation subsidiary is looking at power plants with a capacity of up to 2,500 megawatts from now until 2020.
Meralco PowerGen has taken a majority stake in Redondo Peninsula Energy Inc. (RP Energy), which is developing a 600-MWcoal project in Subic.
Meralco chairman Manuel V. Pangilinan earlier said that the company expects a better year for the company this year on the back of better economic prospects.
He said the company would pursue new projects to further boost its objective of providing a more efficient power distribution system to its customers while sustaining profits.
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