Regional: Consortium to develop power plant in Subic

A consortium of power distributor Manila Electric Co., Aboitiz Power Corp. and Taiwan Cogeneration Corp. is investing US$1.28 billion (roughly P55 billion) to put up a 600-megawatt, clean coal-fired power plant within the Subic Bay freeport zone in the Philippines.

The power project, to be undertaken by a vehicle company called Redondo Peninsula Energy Inc. (RP Energy), would help lower electricity rates within Subic and shore up supply in the Luzon grid in three years? time, reported Philippine Daily Inquirer on Friday.

The construction of the coal-fed facility, will be put up in two phases, with the first 300-MW unit expected to start operations by 2014. RP Energy expects to sell part of the plant?s output to Meralco, the country?s biggest power distributor, although this has yet to be negotiated by the parties and approved by the Energy Regulatory Commission.

Also on Friday, Meralco formalized its entry in RP Energy?through subsidiary Meralco PowerGen Corp.?with the signing of a shareholders? agreement.

Under the agreement, Meralco PowerGen becomes the controlling shareholder of RP Energy with 50 percent plus two shares, while APC, through subsidiary Therma Power Inc., and Taiwan Cogeneration will own the remaining shares equally.(*)