The Korea Electric Power Corp. Philippines (Kephilco) announced it will build two new power plants in the country to contribute 500 megawatts (MW) more of combined capacity, with a feasibility on the project expected to be completed six months from now.
The power company has said it plans to put up more power facilities in the Luzon and Visayas regions to boost its presence in the country.
Hyang-Reol Lyu, Kephilco president and chief executive officer, said the company is preparing to build a 300-megawatt coal-fired power plant in Naga, Cebu and a 200-megawatt coal plant in Subic, Zambales.
Kephilco operates an existing 200-megawatt coal-fired plant in Naga in a joint venture with Salcon Power Corp (SPC). The Korean company holds a 60 percent stake.
Kephilco also operates the 1,200-megawatt Ilijan natural gas power plant under a build-operate-transfer contract. The new project is expected to be another partnership between Kephilco and SPC.
Lyu said bidding for engineering, procurement and construction will start after the feasibility study is completed in September.
“It will be a major baseload power plant and will surely be bigger than the one we are now operating,” he said.
Lyu said the cost of the 200-megawatt power plant in Subic will range from $200 million to $400 million but declined to give other details about the project.
He said the plant will be built to supply mainly the electricity requirements of Hanjin Heavy Industries and Construction in Subic Bay Economic Zone.
For the Visayas base load power project, Kephilco holds 60 percent while SPC maintains the remaining 40 percent stake.
Lyu said for the new power plant, they are eyeing SPC again to be their partner.
He said the feasibility study for the new power plant is expected to be completed six months fro m now.
“It is currently in the feasibility stage. In September this year, it (study) will be completed,” Lyu told reporters over the weekend.
Lyu said the project will be done with SPC adopting the 60-40 ownership structure with the first Naga coal plant.
“It will be a major baseload power plant and will surely be bigger than the one that will be built in Cebu,” he added.
Lyu, however, refused to divulge the cost for the new Naga power project.
Once the feasibility study is completed, Lyu said they will start with the bidding for the engineering, procurement and construction (EPC) of the project.
“After that we will do bidding for construction,” he said.
Besides the 300-MW coal plant, Kephilco is also studying putting up another power project in Subic, Zambales.
Lyu declined to provide additional details on the Subic project.
Kephilco earlier said the company was keen on a 200-MW power plant in Subic, Zambales with Hanjin Heavy Industries and Construction Co. Ltd. Philippines Inc.
If it pushes ahead, the $200-million to $400-million project will be built to cater to the electricity requirements of Hanjin in the Subic Bay Economic Zone.