Meralco unit soon to start Quezon power plant proj

MANILA, Philippines - Meralco PowerGen Corp., the power generation arm of Manila Electric Co. (Meralco), has moved closer to jumpstarting its planned 460-megawatt San Buenaventura coal-fired power plant in Mauban, Quezon.

Meralco has tapped British banking giant HSBC as its financial advisor for the project, with a target to proceed with the construction in the third quarter of the year, said Meralco PowerGen senior vice president for commercial development Angelito Lantin.

“There’s no project cost yet. All assumptions as of now and numbers are still moving,” he said when asked about financial details of the project.

He said the company hopes to issue the engineering, procurement and construction (EPC) contracts in the third quarter of the year.

“Target financial close and EPC notice to proceed (is targeted to be issued) in the third quarter 2014,” Lantin said.

The project developer of the plant is San Buenaventura Power Ltd.

The 460-MW plant is jointly owned by Meralco Power Gen and New Growth B.V., a subsidiary of Thailand’s Electricity Generating Public Co. or EGCO.

The plant is an expansion of the existing 460-MW coal plant owned by Quezon Power Philippines Ltd., which is majority controlled by EGCO.

The proponents are aiming to complete the project by 2017.

Meralco PowerGen signed the joint venture deal with New Growth in August last year.

Under the deal, it would have a 51- percent stake in the project while New Growth would hold the remaining 49 percent.

EGCO, which controls 98 percent of Quezon Power, is eyeing to complete the 460-MW expansion by 2016 or early 2017.