Calaca power plant to be formally turned over to DMCI Power

On Thursday, a Calaca, Batangas power plant will be turned over to DMCI Power Corp., whose affiliate provides coal supplies to the same facility. This was announced by the Power Sector Assets and Liabilities Management Corp. (Psalm), the state-led agency tasked to sell the government’s power assets. In behalf of its subsidiary, DMIC Power’s parent – listed DMCI Holdings Inc. – has made a 40 percent upfront payment worth $151 million, a year ahead of schedule for the acquisition. The advance payment will pave the the way for its turnover, Psalm president Jose Ibazeta said. In July, DMCI Power acquired the coal-fired facility for $361.71 million. The 600-megawatt plant can theoretically generate yearly electricity needs of more than half a million homes. Besides sourcing 100 percent of its coal needs from Semirara Mining Corp. – subsumed under DMCI Holdings Inc. – the plant is expected to use up 1.6 million metric tons of the solid fuel annually. In the meantime, the company’s parent disclosed that to the Philippine Stock Exchange (PSE) that it will borrow P3 billion from Banco De Oro Universal Bank Inc. to fund the plant’s acquisition. The loan will then be advanced to Semirara Mining, which is 56 percent owned by DMCI Holdings. Semirara Mining has exclusive rights to explore, mine, and develop coal resources on Semirara island in Caluya, Antique. The Calaca turnover is a prerequisite to the government’s interim open access program in which customers consuming a megawatt of electricity can choose their suppliers. However, Ibazeta remains uncertain whether the Energy Regulatory Commission (ERC) will allow interim open access once the turnover is completed. Common shares of DMCI Holdings Inc. fell ten centavos to P9.30. - with RJAB Jr., GMANews.TV