Meralco invests in Singapore power project
MANILA, Philippines - Manila Electric Co. (Meralco) has inked a deal to invest in a Singapore power plant expected to start commercial operations by December.
In a statement, Meralco said that its subsidiary, Meralco PowerGen Corp. and First Pacific Company Ltd. have formed a joint venture, FPM Power Holdings Ltd. (FPMP) intended to pursue the Singapore power project.
"FPMP has entered into a Share Purchase Agreement with GMR Infrastructure (Singapore) Pte. Ltd. and GMR Infrastructure Ltd. for the acquisition of the majority shares of GMR Energy (Singapore) Pte. Ltd.," Meralco said.
FPMP will pay S$600 million or about $488 million after March 31 for a 70% stake in GM Energy. The remaining 30% share in said firm is held by Malaysia's Petronas.
Meralco said the closing of the transaction is subject to certain conditions within the next 30 days.
Moreover, the firm said a further infusion of S$60 million or about $49 million into the power plant project is foreseen in the future.
GMR Energy is currently constructing a 2x400-megawatt Liquefied Natural Gas combined cycle combustion turbine power plant in Jurong Island, Singapore. The plant is expected to begin commercial operations by December this year.
"This investment ... complements Meralco’s existing greenfield project developments in the Philippines consisting of a 2x300 MW Circulating-Fluidized Bed coal-fired plant of Redondo Peninsula Energy, Inc. in the Subic Bay Freeport Zone ... and a 1,500 MW LNG-fired and a storage and regasification facility," Oscar Reyes, Meralco's president and chief executive officer, said in the statement.