TO ramp up the development of their power projects, two subsidiaries of the Manila Electric Co. (Meralco) are set to borrow around P100 billion this year.
Meralco President Oscar Reyes said the amount will be borrowed by project proponents San Buenaventura Power Ltd. Co. (SBPL) and Redondo Peninsula Energy Inc. (RP Energy).
SBPL and RP Energy are both majority-owned by Meralco PowerGen Corp., a unit of Meralco.
“Short of P100 billion,” Reyes told reporters when asked about the amount of the estimated borrowings of their two units.
Reyes said SBPL will be borrowing P40 billion while that of RP Energy will be higher.
“RP Energy’s borrowing will be higher than P40 billion because their project is 600 megawatts, while the other one, SBPL, is 455 MW,” Reyes said during a briefing after Meralco’s annual stockholders’ meeting held in Pasig City.
Reyes said SBPL has made significant progress toward starting construction of its 455-MW net coal-fired power generation facility.
The San Buenaventura coal plant in Mauban, Quezon will be the country’s first coal-fired power plant to use supercritical technology that is more efficient than existing coal-fired power generation facilities across the country.
In May, SBPL executed a power supply agreement (SPA) with Meralco for a period of 20 years.
The company is still awaiting the decision of the Regulatory Commission (ERC) on the power plant’s engineering, procurement, and construction (EPC) contract.
Reyes said they are targeting to finish construction of the San Buenaventura coal plant by 2018, possibly in the latter part of that year.
In the case of RP Energy, Reyes said the company jumpstarted development activities after the Supreme Court (SC) upheld the validity of the project’s Environmental Compliance Certificate (ECC).
The project, which is a 2 x 300 MW circulating-fluidized bed coal-fired plant, was delayed because of the writ of kalikasan filed before the High Court by some groups opposing the coal plant.
To date, site preparation activities, including a comprehensive slope study, have been completed.
Reyes said the project is now in the advanced staged as they have already chosen the EPC contractor for an updated contract price.
The Redondo plant is projected to be finished in the early part of 2019.