Toyota Tsusho Corp., the trading company of the Toyota Group of Japan, is seeking to increase its equity position in Sarangani Energy Corporation (SEC) of Mindanao-based Alsons Consolidated Resources Inc., according to a top executive.
Toyota Tsusho Corp. holds 25 percent of SEC wishes to increase its stake to 35 percent, Alsons chairman and president Tomas Alcantara told reporters.
“We are both studying it but they have expressed interest in expanding their equity position in our power company,” he said.
SEC is the owner and developer of a 210-MW coal-fired power plant in Maasim, Sarangani Province in Southern Mindanao. The first 105-MW phase SEC Section 1 began operating in April 2016, while for SEC 2, the company expects to award the engineering, procurement, and construction (EPC) contract within the next few days and start the construction within the year. SEC Section 2 is expected to begin operating in 2018.
When it reaches its full 210-MW capacity in 2018, SEC will be serving over 6 million people in key population areas in Mindanao. The $570 million SEC power plant is the single largest investment in Sarangani Province and the entire Region 12.
Alcantara said that Toyota Tsusho is in a hurry to up their equity in SEC, “They are in a hurry. Just like SEC 1, then in SEC 2, pretty soon we will have an equity call,” he said.
“The math there is, $300 million is the project cost, and $100 million is what you will have to raise. Of that $100 million, $25 million is already [coming from]Toyota Tsusho unless they allow themselves to be diluted. Or, if they decide and we accept an increase in their participation, they will go up to 35 percent. We have not made up our minds yet,” he added.
Meanwhile, ACR Chief Financial Officer Luis R. Ymson, Jr. said that potential net income of SEC 1 for 2016 to ACR would be P160 million.
ACR is planning to commence construction of three major power projects in Mindanao, one of which is SEC 2, before the end of this year.
The other two are the 15 MW Siguil River run-of-river hydroelectric plant also in Maasim, Sarangani; and the 105 MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Talisayan, Zamboanga City.
“After SEC 2 we have SRPI in Zamboanga. The project cost is about $300 to $350 million per 105 MW at today’s costs. All three at today’s costs would approximate $1 billion. That is what’s going to be committed for the three projects. And this is not yet counting the hydro project,” Alcantara said.