Manila Electric eyes Indonesia

Manila Electric Co. (Meralco), the country?s largest power distributor, appears set to finalize the acquisition of a Singapore power generation venture that will involve an investment of S$600 million (equivalent to P19.52 billion), Malaya.com.ph reported on Wednesday.

After Singapore, Meralco is now setting its sights on possible business opportunities in other Asian countries, including Myanmar, Thailand, Vietnam, and Indonesia.

In Myanmar, Oscar Reyes, president said that Meralco is looking at potential partners for opportunities in power distribution. The utility firm, meanwhile, is also eyeing power generation opportunities in Indonesia.

However, Reyes said ?our focus continues to be in the Philippines. we?re committed to continuing to build our own generation portfolio in the Philippines potentially up to 2,700 MW?.

The acquisition in Singapore will involve Meralco?s power generation arm Meralco PowerGen Corp., First Pacific Co. Ltd. of Hong Kong, and Malaysia?s oil giant Petronas.

Under current plans, Meralco and First Pacific will take a 70 percent interest in GMR Energy (Singapore) Pte. Ltd., which is currently under the control of GMR Infrastructure (Singapore) Pte. Ltd. and GMR Infrastructure Ltd.

Petronas, on the other hand, will own the remaining 30 percent holdings in GMR Energy.

After the ownership change, the Singapore company will fall under FPM Power Holdings Ltd. Meralco chairman Manuel V. Pangilinan said Monday that both Meralco and First Pacific have the resources needed to seal the deal.

?Both First Pacific and Meralco have the funds. We have the funds necessary to close it on due date,? Pangilinan said.

?That was a chance for us to invest in a market as stable and as orderly as Singapore,? Pangilinan said.

The investment in Singapore is Meralco?s first venture abroad.

Meralco said GMR Energy is already in the advanced stage of construction of a two 400 MW liquefied natural gas (LNG) combined cycle combustion turbine power plant located on Jurong Island, Singapore.

The plant is expected to start commercial operations in December.

?The LNG fired power plant which was nearing completion by the end of 2012 came as a good opportunity for us to basically kick start our power generation,? Reyes said. (*)