Roxas Holdings, GT Capital unit tie up for co-generation project in Negros

MANILA, Philippines - Listed sugar miller Roxas Holdings Inc. (RHI) and the power generation unit of Ty-led GT Capital Holdings, Inc. are embarking on a cogeneration project in Negros Occidental.

According to RHI, it has signed a memorandum of agreement with Global Business Power Corp. (GBPC), a leading power producer in the Visayas region, to undertake a front-end engineering design (FEED) study and other pre-development activities for a 40-megawatt cogeneration facility in La Carlota City, Negros Occidental.

The agreement details the respective obligations of the two parties in the financing, design, construction, ownership and operation of the biomass power plant.

The prospective facility would be constructed within the premises of RHI’s subsidiary Central Azucarera de la Carlota, Inc. and is set for completion in 2017.

The parties have also agreed to establish a joint venture company to operate the plant.

RHI chairman Pedro Roxas said the cogeneration project would stabilize the power supply in its Negros Occidental sugar production facility. Excess power produced may be contributed to the national grid.

“The cogeneration will not only help stabilize the power supply in our Negros Occidental plant, but will also address the growing concern on energy supply,” he said.

RHI president and CEO Renato C. Valencia said the power project would allow the company to increase its efficiency.

GBCP executive vice president Jaime T. Azurin, meanwhile, said the co-generation project — the company’s first venture into renewable energy production — presents growth opportunities in the businesses of both parties.

“This joint venture is an integration of GBPC and RHI’s complementary businesses to enhance growth opportunities in our respective industries.