Davao biz groups ask BIR to extend receipts expiry
Subscribe Now May 22, 2013 at 08:09am
In a briefing with reporters, SMC president Ramon S. Ang noted that the Bataan plant of 600-megawatt capacity will command capital outlay of $1.0 billion; while the one in Davao of 300MW will require $600 million.
Both facilities will be equipped with circulating fluidized bed (CFB) combustion technology; and are targeted on stream by 2015.
While the generation facilities are still under development, Ang noted that "off-take agreements are already being firmed up with interested parties."
The financing for the both power projects will be sourced from internally generated cash, he added.
While pursuing these greenfield ventures, Ang noted that they will also pursue this year the initial public offering (IPO) for its power subsidiary, SMC Global Power Holdings Corporation - with a target to raise $600 million to $800 million from the issue.
He explained that it will be undertaken via a combination of block shares sale; and the rest of the 49-percent shares in the generation firm will be offered through the stock market.
"There's one foreign investor who is very interested," Ang stressed, but he refused to name the party at this point, pending preparations for the planned sale.
Meanwhile, for the new power projects, the engineering, procurement and construction (EPC) contract had been firmed up with Taiwanese firm Formosa Heavy Industries and local firm True North Manufacturing Services Corporation.
The 600MW projects will form part of the planned 3,000MW capacity expansion in the electricity generation sector earlier cast by San Miguel group in its energy investment blueprint.
The Davao facility, based on the grid impact study (GIS) it secured from the National Grid Corporation of the Philippines, will be for 300MW; while the Bataan plant will also be for 300MW initially and to be expanded by another 300MW.
The other projects eyed by the SMC group are power plants in Bulacan and Cavite for the Luzon grid; 600MW coal plant in Leyte and another 150MW in Panay; as well as the proposed 150-MW greenfield plant in South Cotabato.
While its power development plans will be predominantly coal, San Miguel has previously indicated that the other focus will be on hydropower ventures.
The conglomerate is currently the biggest player in the power generation sector, as based on its equity ownership and dispatch call on capacity being wheeled to the power grid.
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