Manila Electric Co. (Meralco), the country’s largest power distributor, has formalized its deal with Thailand’s largest power producer through a signed joint development agreement for the establishment of 460-megawatt (MW) coal-fired power facility in Quezon province.
A disclosure to the Philippine Stock Exchange on Friday showed that Meralco PowerGen Corp. (MGen), a wholly owned subsidiary of Meralco, and New Growth BV, a unit of EGCO Group of Thailand, have signed a joint development agreement (JDA) for the new 460-megawatt supercritical coal-fired power plant project in Mauban, Quezon.
Under the agreement, MGen will have a 51-percent stake in the project company, which the firm hasn’t yet identified, while New Growth BV will hold the remaining 49 percent.
“The project’s cost is yet to be determined and will depend largely on final design, specifications, and other terms determined during the engineering, procurement and construction tender process,” Meralco further said in the disclosure.
Four days ago, it was reported that the power-generating arm of Meralco and EGCO Group of Thailand will join forces in building a new coal-fired power plant for the expansion of the Quezon Power Project.
Earlier, EGCO of Thailand said that it is interested to tap Meralco’s partnership for the expansion of its Quezon Power Project, which has an existing 460-MW coal-fired generating plant and a 31-kilometer transmission line as existing facilities. EGCO controls 98 percent of Quezon Power.