MGen joint ventures seek financing for Philippine power projects

Philippine firm MERALCO PowerGen Corp. (MGen) plan to raise close to P100 billion (US$2.24 billion) to fund two power projects that are expected to move forward this year.

The projects are a 455-MW coal plant in Mauban, Quezon, that MGen will develop through the San Buenaventura Power Ltd. Co. (SBPL) and a 600-MW coal plant of Redondo Peninsula Energy, Inc. (RP Energy) in Subic, Zambales.

SBPL is a joint venture between MGen and New Growth B.V. (a wholly-owned subsidiary of Electricity Generating Public Co. Ltd. (EGCO) of Thailand) and RP Energy is a joint venture among MGen, Aboitiz Power Corp. and Taiwan Cogeneration Corp.

The firms are planning to close financing this year, according to Oscar S. Reyes, president of MGen’s parent firm Manila Electric Co. (Meralco).

Mr. Reyes said will obtain a P40-billion funding for the 455-MW project and around P60-billion funding for the 600 MW coal plant.

Both plants will start commercial operations in early 2019.

MGen is also working on another coal project, the 1,200-MW Atimonan plant in Quezon.

The company is also in talks with Osaka Gas and Mitsui for a potential 1,500-MW liquefied natural gas (LNG) project in Bataan.

MGen aims to build a sizable power generation portfolio. The company is currently also part of Global Business Power Corp. (GBPC) through its 22% interest. GBPC is one of the largest independent power producers in the Visayas region.

MGen has also gone abroad in partnership with First Pacific Co. Ltd. Both firms have incorporated PacificLight Power Pte. Ltd., which holds a 70% stake in GMR Energy Singapore Pte. Ltd., the owner of an 800-MW natural gas power plant in Singapore.

MGen’s parent company, Meralco, is the Philippines’ largest power distributor with over five million customers