Cebu-based SPC Power Corp. has created a unit to primarily oversee the construction and operation of a new 2×150-megawatt (MW) coal-fired power plant in Naga, Cebu.
In a disclosure to the Philippine Stock Exchange (PSE), SPC Power said its board on Thursday approved the establishment of Cebu Naga Power Corp. (CNPC).
The subsidiary will handle the planned circulating fluidized bed combustion (CFBC) facility, which will replace the demolished coal-fired Thermal Power Plant 1 and 2 at the Naga power complex.
SPC Power chairman Alfredo L. Henares has said the company would invest roughly P25 billion for the development of the new power plants.
A feasibility study is targeted for completion this month and construction is expected to start in 2016.
The old plants were demolished last July.
The Naga complex was awarded to SPC Power in 2014 after the firm paid P1.4 billion to state-run Power Sector Assets and Liabilities Management Corp.
The complex, which includes the 43.8-MW Cebu Diesel Power Plant and a 55-MW land-based gas turbine facility, will be rehabilitated, run, maintained and managed by SPC Power.
SPC Power also operates the 146.5-MW Panay Diesel Power Plant in Dingle, Iloilo, the 22-MW Bohol Diesel Power Plant in Tagbilaran City and the Olango Diesel Power Plant in Olango, Lapu-Lapu City.
The company was formerly known as Salcon Power Corporation and changed its name to SPC Power in September 2007.