DMCI forms new unit to operate Calaca plant

MANILA, Philippines - DMCI Holdings Inc. has set up a new company to operate and rehabilitate the 600-megawatt Calaca coal-fired power plant in Batangas province.

Based on documents submitted to the Securities and Exchange Commission, the new company, Sem-Calaca Power Corp., shall acquire, expand and maintain power generating plants, develop fuel for generation of electricity, and sell electricity to any person or entity through electricity markets.

Sem-Calaca was initially capitalized at P5 million, P1.25 million of which has been subscribed and paid for.

The Calaca facility consists of two 300-MW generating units primarily designed to run as a base-load plant and designed to use local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings. The two units are currently producing a combined capacity of only 350 MW.

DMCI won the auction for the Calaca power plant in July with a bid of $362 million, less than half of what French utility Suez paid for in 2007. 

Emerald Energy, a unit of Suez, returned the power plant to the government in January after its condition deteriorated, forcing the government to resell it at a lower price amid tough economic conditions.

DMCI was one of only two bidders that showed up for the auction of the plant. Its bid edged out Thailand-based Banpu Power Ltd. Inc. which submitted a bid of $280 million.

DMCI is the firm that consolidates all construction business, construction component companies and related interests of the Consunji family.

Its core interests are in construction, real estate and coal mining. It owns 56 percent of Semirara Mining Corp., which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.