31 July 2016

BoI approves Subic power plant

Redondo Peninsula Energy Inc., led by Meralco PowerGen Corp., received a certificate of registration from the Board of Investments for its 600-megawatt coal-fired power plant in Subic, Zambales costing P63 billion.

“The registration entitles RPE to duty-free importation of equipment, materials and spares used for the power plant for a period of five years from date of registration. Also income tax holiday for four years from commercial operation,” RP Energy project development manager Joselito Lantin said Friday.

Lantin said RP Energy would build the project in phases. The company is currently negotiating for the engineering, procurement and construction contract covering the first 300-MW phase of the project.

He said the EPC contract would include an option for a second 300-MW unit.

“Targeted to start construction for phase one is fourth quarter 2016. Expected commercial operation is late 2019/early 2020,” Lantin said in a recent briefing.

Electricity generated by the project is covered under a separate power supply agreement with Manila Electric Co. accounting for 225 MW and Aboitiz Energy Solutions contracting 75 MW.

The company signed an amendment to the power plant site lease and transmission line right-of-way lease agreements with the Subic Bay Metropolitan Authority in February.

“We will do 300 MW and then [expand to] 600 MW, depending on our capability to interconnect with NGCP [National Grid Corporation of the Philippines]. It just takes a few months before you can start the phase two,” Meralco PowerGen chairman Manuel Pangilinan said earlier.

Meralco PowerGen is the power generation arm of Meralco, the country’s biggest power distributor, and owns a majority stake in RP Energy. (Alena Mae S. Flores, Manila Standard)

Full story: http://thestandard.com.ph/business/211878/boi-approves-subic-coal-plant.html