San Miguel eyes 3 more power plants
abs-cbnNEWS.com | 11/03/2009 10:44 PM
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MANILA - After acquiring 2 power plants and a stake in power retailer Meralco, diversifying conglomerate San Miguel Corporation is eyeing to expand its power-related porfolio by joining the bid for 3 hydroelectric power plants.
In a disclosure to the stock exchange on Tuesday, San Miguel confirmed that it has written the Power Sector Assets and Liabilities Management Corp. (PSALM), the state-owned agency tasked to privatize power generating assets, of its interest to join the bid.
"We confirm that the Company, through its subsidiary, Strategic Power Development Corp., has submitted its interest to participate in the bidding for the management of 3 independent power producer administrator (IPPA) contracts," the firm wrote.
The 3 hydroelectric power plants are:
- the 345-MW San Roque multipurpose hydroelectric power plant in Pangasinan managed by Marubeni Corp. and Kansai Power International Corp. of Japan under a build-operate-transfer agreement with National Power Corp.
- the 70-MW Bakun hydroelectric power plant in Alilem, Ilocos Sur operated by the Aboitiz subsidiary, Luzon Hydro Corp.
- the 30-megawatt Benguet mini-hydro facilities in the Cordillera Administrative Region province run by Aboitiz Group subsidiaries, Hydro Electric Development Corp. and the Northern Mini-Hydro Corp.
Under the IPPA contract, an interested bidder has to join the bid for all 3 contracts.
There are 9 interested bidders, including Aboitiz Power Corp., Pacifica Inc. and Phinma's unit Trans Asia Oil and Lopez-led Energy Development Corp.
The bidding has been moved to December 11.
Last August, San Miguel won the right to sell the output of the country's largest coal-fired power plant, with a capacity of 1,000-megawatts, in Sual and bought a 620-megawatt compressed natural gas power plant on Manila Bay for a combined $1.085 billion.
According to San Miguel president Ramon Ang last September, the firm's long-term goal to increase the share of power-related businesses in its portfolio to 25% from the current 10%. He said the food and beverage business will likely account for 10% to 20%, while its telecom business will take up 30%.
Ang also said that its energy arm, San Miguel Energy Corp (SMEC), is planning to hold an initial public offering within the next 3 years to pursue its power-related acquisitions. Ang said SMEC would sell as much as 49% of its shares to the public. SMEC's parent, meanwhile, will keep 51% of the company, he said.
The firm said it is planning to invest about $2 billion in the energy sector.
It also put on on hold its controversial billion-dollar Laiban dam project.
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