Alsons Consolidated Resources Inc. plans to invest $180 million in coal-fired power projects in the next three years, a senior official said Monday.
Alsons executive vice president and chief operating officer Tirso Santillan said the amount would correspond to the company’s 30 percent equity stake in power projects lined up until 2019 and costing about $600 million.
He said 70 percent of the projects would be funded by debt and 30 percent by equity.
The company plans to build a 105-megawatt second unit in the coal-fired power plant of subsidiary Sarangani Energy Corp. in Maasim, Sarangani province at a cost of $250 million. Alsons started operating the first unit of 105 MW early this year.
The company through unit San Ramon Power Inc. is also set to build a 105-MW power plant in Zamboanga City next year with a cost of $320 million over three years.
Santillan said the company was also pursuing renewable energy projects, such as solar and hydro, pending power supply agreements with electric cooperatives.
The 15-MW Siguil hydro project is estimated to cost $50 million to construct, while the company’s 20-MW planned solar project will cost $30 million.
Santillan. meanwhile, said Alson Power may post a lower net income this year to slightly over P400 million from P600 million.
“2016 is the first year of merchant activities in power business,” Santillan said.
The power output of Alsons’ Western Mindanao Power Corp. and Southern Philippines Power Corp. were previously under contract with National Power Corp. until it lapsed in 2015.
“As a merchant plant, circumstances are different, our revenues from those two plants are much lower. But then, on the other hand, we added SEC (Sarangani Energy) for 2016—which was a capacity non-existent in 2015,” Santillan said.
He said the diesel plants were just expected to earn about P400 million this year from P800 million for Western Mindanao, P300 million for Southern Philippines and P150 million for Mapalad Power.
“This year, all three plants will earn about P400 million,” Santillan said.
Alsons is Mindanao’s first and most experienced independent power producer and has has played a pivotal role in helping end the power crisis in the country’s second largest island.
Alsons’ affiliated power facilities are expected to reach a total generating capacity of 588 MW by 2019, or approximately 25 percent of Mindanao projected peak power demand for that year.
The Alcantara Group, through its other units, is also engaged in aquaculture and agribusiness, property development and services. It has been an active player in the economic development of Mindanao and the rest of the Philippines for over 60 years.