Philippines: San Miguel plans $2 billion power plant

Home >> Daily News >> Philippines News >> Investment >> Philippines: San Miguel plans $2 billion power plant

NEWS UPDATES

6 March 2010

March 2, 2010
Philippines: Biomass firm to speed up projects amidst power crisis

February 15, 2010
Philippines eyes $1.2-B Batangas-Manila gas line

February 12, 2010
Philippines delays awarding of geothermal deals

February 11, 2010
Philippine govt orders status quo in Shell tax row

January 14, 2010
Philippines to call Ilijan power contract bids in April

Power capacity in the southern province of Mindanao is expected to get maximum shoring up with the 2,000-megawatt mine-mouth facility being proposed by San Miguel Energy Corporation (SMEC) to be undertaken in phases, the Manila Bulletin reported.

At $1 million per megawatt estimated investment, SMEC will have capital infusion of up to $2 billion for the greenfield capacity, but it was not specified when is the exact timeframe to complete the entire proposed capacity.

In an interview with reporters, SMEC president Ramon S. Ang said the initial capacity could range from 150 to 300 megawatts at the company’s proposed site in General Santos. The capacity planning will also be aligned with the projected demand growth in the grid.

“We are still doing our feasibility study (on the project),” Ang noted, but when proposals push through, he stressed that the first unit is expected on stream by 2012. “It will take 24 months to build the first unit,” he added.

The project, when completed, he said will have comparable tariff to the existing grid rate in Mindanao; since the fuel will be sourced on-site.

Nevertheless, San Miguel will have to cross the hurdle of market cap policy under the Electric Power Industry Reform Act (EPIRA), which is set at 30-percent per grid and 25-percent on a national basis.

Ang said applications for environmental compliance certificate (ECC) with the Department of Environment and Natural Resources (DENR) as well as the filing for coal operating contract (COC) with the Department of Energy (DoE) are currently being prepared.

Currently, Mindanao is being plagued by worsening power outages due to the strike of El Niño phenomenon. The drought situation resulted in drastic decline in water level at Lake Lanao, which is the main source of water supply for the Agus hydropower plants.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1-Trillion Market

We are the Voice of Southeast Asia	Media Kit
The only Media Dedicated to Southeast Asia	Advertising Rates for Magazine
	Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.

Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited

or

submit your comment in the box below

Name

Email

1. Verifier