The power unit of Ayala Corp. and its partner, Power Partners Ltd. Co. (PPLC), have signed an engineering, procurement and construction (EPC) contract with Shanghai Electric Power Construction Co. (SEPCC) for the development of a $1-billion thermal facility in Mindanao.
A disclosure to the Philippine Stock Exchange showed on Wednesday that GNPower Kauswagan Ltd. Co. (GNPK) has assigned SEPCC, a subsidiary of Power Construction Corp. of China, as the EPC contractor for the 552-megawatt thermal plant in Kauswagan, Lanao Del Norte.
GNPK is the joint venture firm between AC Energy Holdings Inc. (AC Energy) and Power Partners Ltd. Co. The construction of the thermal facility, which will have four separate plants with 138- megawatt capacity each, is scheduled to begin by the fourth quarter of this year.
The project is expected to be completed within three years with the first unit operational by early 2017. GNPK has already executed well over 300MW of long-term power purchase agreements and has secured its Environmental Compliance Certificate from the Department of Environment and Natural Resources.
“We recognize that Mindanao is in dire need of power and we are keen to provide the needed capacity at very reasonable and affordable terms,” AC Energy president and chief executive officer John Eric Francia said in a statement.
“This [project]puts us on track to achieve our goal of developing over 1000 megawatts of attributable capacity both in conventional and renewable technologies by 2016,” he added.
Earlier this year, AC Energy closed the deal acquiring approximately 17 percent ownership stake in GNPower Mariveles Coal Plant Ltd. Co. (GMCP), the owner and operator of a 600-megawatt coal fired power generating plant in Mariveles, Bataan.
GMCP started full commercial operations in April.