Toyota Tsusho mulls higher stake in Sarangani Energy

MANILA, Philippines - Japan’s Toyota Tsusho Corp. is expected to make a decision in early 2017 whether to raise its stake in Sarangani Energy Corp. (SEC) of the Alcantara Group.

The Japanese firm is scheduled to make its decision on its equity call in January 2017, Alsons Power Group corporate planning officer Antonio Miguel Alcantara said.

 “(They will make a) decision because you know how in Phase 1, Toyota’s investment is at 25 percent so for Phase 2, they’ll confirm that number or go higher if they want,” he said.

Toyota Tsusho can raise its equity to 35 to 40 percent, based on initial talks between the two parties.

SEC is developing a 2x105-megawatt (MW) coal plant in Maasim, Sarangani. The first 105-MW unit began operating in April this year, with Toyota Tsusho acquiring 25 percent through a buy-in in 2012.

Apart from the SEC project, Alsons Power is also offering its other projects to Toyota Tsusho for further equity investments.

“They’ve been our partners for 18, 20 years. Whatever we develop, we offer it to them,” Alcantara said.

Other projects the Japanese firm is interested in are the 105-MW coal power plant under San Ramon Power Inc. (SRPI) and the 15-MW Siguil run-of-river power plant.

Alcantara, however, noted they have to finish all pertinent documents first before Toyota Tsusho makes a final investment call.

“When they evaluate it, you need to already finish all your project documents in place, you need your power supply, EPC (engineering, procurement and construction) contract in place. That’s the only time they can make a formal decision. Before that, it’s just formal negotiations in order to get them ready,” he said.

The 105-MW SRPI plant is expected to begin operating in 2019 to provide baseload power to Zamboanga City and other key areas in Mindanao.

Meanwhile, the 15-MW Siguil run-of-river power plant is targeted to start running within 2018.