Meralco-EGCO is on track with Quezon plant

MANILA, Philippines – San Buenaventura Power Ltd. Co. (SBPL), the joint venture formed by Meralco PowerGen (MGen), the power generation arm of Manila Electric Co. (Meralco), and a Thai power firm is on track to jumpstarting its 455-megawatt coal-fired power plant in Quezon, an official said.

Angelito Lantin, MGen senior vice president and commercial development head said they are raising P40 billion from the debt market to fund the project.

He said they are now finalizing the project financing deal with local and international banks to raise the needed amount.

MGen and New Growth BV, a wholly owned subsidiary of Electricity Generating Public Co. Ltd. (EGCO) of Thailand, partly owned by Electricity Generating Authority of Thailand (EGAT), have teamed up to form the San Buenaventura power project.

Under the arrangement, MGen will own 51 percent of the power facility, including rights to assign up to two percent to an approved assignee, while New Growth B.V. holds the remaining 49 percent.

Lantin expressed hopes that the project financing deal would be approved in six months.

“We hope that within six months, it will be approved…Everything is geared up for completion of these activities. We hope to issue a notice to proceed very early next year,” Lantin said.

San Buenaventura has already signed a power supply agreement with Meralco for the sale and purchase of the plant’s entire output for a 20-year period upon commencement of commercial operations and subject to the approval of the Energy Regulatory Commission (ERC), the power regulator.