Alcantara Group seeks new investor in Sarangani plant

MAASIM, Sarangani, Philippines — Sarangani Energy Corp. (SEC) of the Alcantara Group is looking to add a new partner for its 2x105-megawatt (MW) coal-fired power plant here as Japanese partner Toyota Tsusho Corp. will cap its stake at 25 percent.

The company is in talks with multinational institutional investors and local companies for a possible investment in its power project, Alsons Consolidated Resources Inc. (ACR) and SEC chairman Tomas Alcantara said in a media briefing during the ceremonial switch-on of SEC’s Section 1 and kick-off of Section 2.

Toyota Tsusho decided earlier not to pursue its plant itto increase its stake to as much as 40 percent in SEC.

“We were the ones who put the limit on what their share will be since there are certain constitutional limitations for the foreign content of the power plant. At 25 percent, we would want to have the flexibility of looking at other partners that will give us better yield and other inputs,” Alcantara said.

He said they are looking to close a deal with a new partner within the first half of the year.

“We believe we will be able to do this within the first half—to close a deal and have heads of agreement signed,” Alcantara said.

ACR, SEC’s parent firm, has more headroom for a local company than a foreign firm as it is covered by the nationality requirement under the Constitution, the company official said.

“If foreign, headroom is not that much. If it is a local partner, where nationality requirement will not exist, we will be limited to 49 percent,” Alcantara said.

SEC kicked off yesterday the civil works for the second 105-MW unit of its power plant as well as launched the first section of the $705-million power plant led by President Duterte.

Section 1 currently supplies power to more than three million residents of the provinces of Sarangani, Compostela Valley, Agusan del Norte and Agusan del Sur; the cities of Gen. Santos, Iligan, Bayugan, Butuan, Samal and Tagum, as well as some key areas in Davao del Norte and South Cotabato.

The 105-MW Section 2 is expected to start operating in 2019, in order to provide power to an additional three million residents in provinces of South Cotabato, Davao del Sur, Misamis Oriental, North Cotabato, Zamboanga del Norte and Zamboanga del Sur including the cities of Cagayan de Oro, Dapitan, Digos, Dipolog, Koronadal, Kidapawan and Pagadian.

“Access to safe, reliable and affordable power is essential to development. Alsons Power has not only played a pivotal role in ending the power shortage in Mindanao, with today’s launch of SEC Section 2 and this year’s planned start of construction of another 105 MW baseload plant in Zamboanga City, as well as a 15-MW run-of-river hydro plant in Sarangani, we are helping lay the groundwork for power security in the near future in order to meet the expected rise in demand brought about by Mindanao’s dynamic economic growth.