Meralco PowerGen to build new coal power plant

MANILA, Philippines - Meralco PowerGen Corp., the power generation arm of Manila Electric Co. (Meralco), is hoping to start the construction of the planned 460-megawatt San Buenaventura coal-fired power plant in Mauban, Quezon this year, a ranking official said.

“We hope to start construction of the project this year,” Meralco PowerGen senior vice president for commercial Development Angelito Lantin said.

The project developer of the plant is San Buenaventura Power Ltd.

The 460-MW plant is jointly owned by Meralco Power Gen and New Growth B.V., a subsidiary of Thailand’s Electricity Generating Public Co. or EGCO.

The plant is an expansion of the existing 460-MW coal plant owned by Quezon Power Philippines Ltd., which is majority controlled by EGCO.

Proponents are aiming to complete the project by 2017.

Lantin said proponents have already started discussions with international and local lenders for the financing of the project.

Furthermore, he said proponents are hoping to award the engineering, procurement and construction contracts by the third quarter and commence construction in the fourth quarter.

MGen signed the joint venture deal with EGCO’s New Growth in August last year.

Under the deal, MGen would have a 51 percent stake in the project while New Growth would hold the remaining 49 percent.

Meralco’s board of directors last year approved a resolution authorizing MeralcoPowerGen to execute a joint development agreement with EGCO for the new 460-MW super critical coal fired power plant of the Quezon Power Project in Mauban, Quezon.

EGCO, which controls 98 percent of Quezon Power, is eyeing to complete the 460 MW expansion by 2016 or early 2017.

The Quezon Power project, which operates an existing 460 MW coal fired plant, commenced commercial operations in May 2000 and provides stable and reliable electricity to the Luzon grid under a 25-year power sales agreement with Meralco.