Business

Korea firms eye $4.4 billion investments in Philippines energy projects

Danessa Rivera - The Philippine Star

June 8, 2018 | 12:00am

Korea firms eye $4.4 billion investments in Philippines energy projects

PHL-KOREA JOINT TRADE COMMISSION: Trade Secretary Ramon Lopez signs a memorandum of understanding with Republic of Korea Trade, Industry, and Energy Minister Ungyu Paik to establish a mutually beneficial and strategic trade and economic partnership between the two countries through a Joint Commission for Trade and Economic Cooperation. The JCETC will cover cooperation on the areas of trade and investment, industry and industrial technology, especially automobile as well as mold and die. The MOU signing was held in the presence of President Duterte and South Korean President Moon Jae-in during the bilateral meeting between the two governments on June 4.

MANILA, Philippines — Four Korean firms have expressed interest in investing a combined $4.4 billion in various energy projects in the Philippines.

Energy Secretary Alfonso Cusi said SK Engineering & Construction, Sy Enc Co., BKS Energy Industry Ltd. and SK E&S, formally submitted their letters of intent during the Philippines-Korea Business Forum and Luncheon, which was part of the recent activities included in President Duterte’s official visit to Korea.

“We welcome these investments, especially as we anticipate the growth of our economy and expected demand due to the government’s Build Build Build program,” Cusi said.

SK Engineering & Construction, an engineering, procurement and construction (EPC) contractor in the Philippines, submitted its proposal for a coal-fired power plant in Quezon province, which will require more than $2 billion in investments.

An EPC contractor normally handles all activities from design, procurement, construction, commissioning up to the handover of the project to the end-user or owner.

The project is expected to create at least 3,000 jobs per year during the construction period.

Renewable energy firm Sy Enc Co. submitted a proposal for a wind power generation which is estimated to cost over $255 million and which will create 10,000 jobs.

For its part, BKS Energy Industry Ltd. plans to invest $500 million in a solar power generation facility.

SK E&S, which engages in the business of power generation, district energy, and city gas in both Korea and overseas, is eyeing to invest $1.6 billion in an LNG terminal hub.

Apart from these companies, the DOE earlier said Cusi, Undersecretary Donato Marcos and assistant secretary Gerardo Erguiza Jr. met with officials of Korea Hydro & Nuclear Power (KHNP) led by its president and CEO Chung Jae Hoon to discuss possible nuclear power investments.

“During the discussions, DOE and KHNP explored energy cooperation endeavors, including the possibility of conducting a feasibility study on the establishment of a small, 100-MW modular reactor in the Cagayan Economic Zone Authority,” the DOE said.

The Philippines sees nuclear power as a viable long-term energy option for the Philippines based on results of a technical cooperation with the International Atomic Energy Agency (IAEA).