MANILA, Philippines – Alsons Consolidated Resources, Inc. (PSE:ACR) confirms the news article published by BusinessWorld Online entitled “Alsons allots $180M for 2 plants” dated December 6, 2016.
According to Angel M. Esguerra, III, ACR Corporate Information Officer and Assistant Corporate Secretary, in a disclosure with Philippine Stock Exchange (PSE), the company confirms the information relayed by the article.
The news found on the online portal of BusinessWorld claims that Alsons set aside $180 million for its two coal-fired power plants’ equity spending. The two power facilities are located in Mindanao and expected to run commercially by 2020.
Tirso G. Santillan, Jr., ACR Executive Vice-President, stated that the capital investment will be for Zamboanga City’s 105-megawatt (MW) San Ramon Power, Inc. and Maasim, Sarangani’s 105-MW of Sarangani Energy Corp. The latter is the second unit of the 210-MW Maasim power plant.
According to Santillan during a briefing at the Makati Diamond Residences in Makati City, to be cautious, there will be $600 million allocation for both San Ramon and Sarangani Energy projects.
Antonio Miguel B. Alcantara, ACR Corporate Planning Officer, stated that the capital investment accounts worth $180 million will contribute to 30 percent of the project costs. The rest or 70 percent will be attributed to loans.
The project will undergo development in three years as disclosed by the company officials. San Ramon Power project will be operational in 2020, whereas the subordinate unit of Sarangani Energy will run commercially in 2019.
Santillan claimed that the coal-fired power plants’ generation already has clients. It is also the objective of the company to obtain a fully contracted course catalog.
A third of the long-term investments will be used for 2017 solely, which is roughly P3 billion or $60 million. Since the preliminary phase of the project is usually requiring higher spending, the amount to be used may likely advance.
ACR is also exploring renewable energy sector by building a hydroelectric plant with a capacity of 15-MW by the Siguil River in Maasim, Sarangani. The construction of the project will begin next year. The total cost of the expenditure is estimated $45 to $50 million.
Towards the end of the year, Alsons is also eyeing a small solar plant. The solar facility will have a capacity of 20 MW, cost around $30 million, and would be located also in Sarangani. The company disclosed that they are seeking power purchase agreement (PPA). In general, the construction will take about 10 months.