Meralco-led consortium finalizes New Clark City deal

MANILA, Philippines — A consortium led by Manila Electric Co. (Meralco) has finalized a deal with the Bases Conversion and Development Authority to provide power services in New Clark City in Tarlac.

Other members of consortium are Marubeni Corp., Kansai Electric Power Co. and Chubu Electric Power Co.

Under the deal, Meralco will own a 60 percent stake in the consortium.

The consortium will form a special purpose company (SPC) that will have an equity stake equivalent to 90 percent in a joint venture company to be formed with the BCDA.

“The JVC shall then pursue and undertake the financing, design and engineering, establishment, construction, development, and operation and maintenance of the electric power distribution system in New Clark City,” Meralco said.

Last January, the consortium was given the notice of award by the BCDA for pitching the lowest offer at P0.6188 per kilowatt hour.

Meralco and its partners are looking to spend around P1 billion to put up the facilities in New Clark City, said Meralco senior vice president Rogelio Singson.

The initial phase will involve overhead distribution lines to serve the Southeast Asian (SEA) Games in November. In preparation for increased demand, distribution facilities will be built underground.

For the initial phase, Meralco is projecting a demand of 10 to 14 megawatts.

New Clark City is envisioned to be the country’s first smart, disaster-resilient, and sustainable city.