Iloilo City―Global Business Power Corp. is teaming up with Meralco PowerGen Corp. to build a 670-megawatt coal-fired power project in Luna, La Union province, officials said Thursday.
Global Business president Rolando Bacani said the parties agreed in principle to pursue the partnership.
“They [Meralco PowerGen] have already spent money for the project,” Bacani said.
Meralco PowerGen’s parent company Manila Electric Co. has a minority stake in Global Business Power, one of the biggest power players in the Visayas.
Global Business Power executive vice president Jaime Azurin said a third partner would be tapped to proceed with the project.
The project company―Global Luzon Energy Development Corp.--is in the process of getting the environmental compliance certificate for the project, he said.
“We are targeting to finish [ECC] in the first quarter, including transmission connection. Hopefully, by early 2018 we can start construction,” Azurin said.
He said most power plants were being constructed in the southern side of Luzon, resulting in congestion in that part. Global Business Power therefore decided to look for a facility in the northern Luzon, he said.
The two by 335-MW coal-fired power generating facility would be built in Barangays Carisquis and Nalvo Sur, Luna, La Union.
Azurin said the planned power facility would cost $2 million per megawatt to construct. Global Luzon already inked a power sales agreement with Meralco for 600 MW of capacity.
“Construction [period] is third quarter 2018 and operation [would be by] first quarter 2022,” Bacani said earlier.
“We need to build higher-capacity units so that we can offer lower prices and bring down the cost of electricity. The largest unit that the Visayas Grid can accept now is only 150 MW,” he said.
Global Business Power recently completed the 150-MW coal plant expansion of subsidiary Panay Energy Development Corp.
Global Business also owns power plants in Mindoro, Aklan and Toledo. Bulk of its 854 MW capacity are coal-fired power plants.