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Power and Utilities

The Power Sector

The Power Sector

Palm Thermal Consolidated Holdings Corp.

Palm Thermal Consolidated Holdings Corp. (PTCHC) is ABCI’s designated holding company for its share in a 135MW coal power plant joint venture in Iloilo. PTCHC is wholly owned by ABCI and has stakes in two companies: Palm Concepcion Power Corporation (PCPC), the operator of the power plant being constructed, and Panay Consolidated Land Holdings Corporation (PCLHC), the owner of the land on which the power plant is being built. In December 2013, the shareholders of both PCPC and PCLHC approved the merger of the two companies with PCPC as the surviving entity. SEC approved the merger in July 2014.

ptchc

Palm Concepcion Power Corporation

pcpcPalm Concepcion Power Corporation (PCPC) is the operating entity of the PTCHC and Jacinto L. Ng, Sr. Group’s coal power plant joint venture. The Ng Group also owns the Rebisco Group of Companies (food manufacturing), Asia United Bank, Earth+Style (property development), and Quantuvis Resources Corp. (hotel/serviced apartment management).

PCPC is operating the first unit of the 2 x 135MW coal-fired power plant in Concepcion, Iloilo with the second unit already in the initial stage of pre-construction activities. The plant was developed as a new base load power plant in Panay Island to address the requirements of the grid.

The total project cost of ₱14.3 billion for the first unit is being financed by a mix of 30% equity and 70% debt. The debt portion consists of a ₱10 billion syndicated term loan provided by Banco de Oro, China Bank, and Asia United Bank.

PCPC appointed SNC Lavalin to be the Owner’s Engineer and Project Manager. SNC Lavalin is one of the world’s leading engineering and construction groups with a power project portfolio of nearly 380,000MW. The steam turbine and generator are supplied by Alstom while a coal supply agreement for 400,000MT/year was signed with PT. Pevensey Indonesia. The Engineering Procurement and Construction (EPC) Contractor is NLSC, a consortium of First Northeast Electric Power Engineering Corp. of China, Liaoning Electric Power Survey & Design Institute, and Shenyang Electric Power Design Institute Co., Ltd. NLSC has over 100 years of experience in EPC work for coal-fired and other types of power plants. In the Philippines, NLSC is a major sub-contractor for the civil works of a recently completed coal-fired power plant project in Luzon.

pcpc-site

The Project is located in Sitio Puntales, Barangay Nipa, Municipality of Concepcion, Iloilo Province in the Island of Panay. The town of Concepcion, which lies along the northeast shoreline of the province, is 103 km from Iloilo City by road, a distance that can be traveled in about two hours by car.

The plant site is about 4 km south of Concepcion proper, which can be reached by motor vehicles through the provincial road. Concepcion has a good off-loading site, which is sheltered from strong winds and waves throughout the year. The Island of Panay consists of four provinces, namely: Aklan, Antique, Capiz and loilo. The Project’s location is ideal for supplying electricity in the island, through the West Grid (Antique and Iloilo City) and North Grid (Capiz and Aklan) of the transmission network of the National Grid Corporation of the Philippines (NGCP). The yellow broken line shows the approved connection of the power plant to the San Juan Substation at Barotac Viejo, Iloilo, which is the nearest NGCP substation to the Project.

In January 2016, a groundbreaking ceremony was held for the PCPC-funded ₱91.5-million access road project spanning 4.2 kilometers from Concepcion town to the power plant site. Construction of the power plant’s first unit at this time is 95% complete. Full commercial operations are began on August 16, 2016, generating electricity for Panay, Negros, Cebu, and Leyte islands.

On November 28, 2016, the PCPC Inauguration and Switch-On Ceremony was held at the Malacañang Palace, with Philippine President Rodrigo Duterte as Guest of Honor. Other key officials in Iloilo that attended were Iloilo Governor Arthur Defensor Sr., Iloilo 5th District Rep. Raul Tupas, Concepcion Mayor Milliard Villanueva, and the Concepcion Municipal Council.

Peakpower Energy, Inc.

In 2013, Peakpower Energy, Inc. (PEI) was set up to address the lack of base load power in the Mindanao electric grid for the next 2-3 years and in the future to allow the partner electric cooperatives to meet their demand for peaking power. The salient points of the projects are: short gestation period to complete each project and take-or-pay contracts on the capital expenditure ensuring returns regardless if the plant is run or not.

As of October 2013, PEI is another joint venture between the ABCI Group and the Ng Group for power generation. The shareholders signed an agreement which outlines their collective support and commitment to bring Mindanao’s economic and power development to the next level.

PEI’s focus is on putting up peaking plants in partnership with credit-worthy electric cooperatives to address the ongoing power shortage in Mindanao. These plants take one year to complete, and shall be under build-operate-transfer arrangements with each off-taker.

Wartsila Finland Oy supplies the bunker/diesel-fired engines to be used in these power plants. These are engines with excellent fuel flexibility and efficiency. Wartsila has around 48.8GW of installed power in 4,599 power plants all over the world. In the Philippines, it has over 2,000MW of installed capacity.

Today, PEI has three wholly-owned subsidiaries, Peakpower Soccsargen, Inc. (PSI), Peakpower San Francisco, Inc. (PSFI) and Peakpower Bukidnon, Inc. (PBI). PSI and PSFI currently operate bunker/diesel-fired peaking power plants in General Santos City and San Francisco, Agusan del Sur respectively.

Peakpower Soccsargen, Inc.

peakpower-soccsargen-incOn March 20, 2013, Peakpower Soccsargen, Inc. (PSI) executed a Power Purchase Transfer Agreement (PPTA) with South Cotabato II Electric Cooperative, Inc. (SOCOTECO II) whereby PSI will build and operate a 20.9MW diesel/bunker-fired power plant; ownership of which will be transferred to SOCOTECO II at the end of the 15-year cooperation period at no extra cost. The power plant is located within the SOCOTECO II compound in Brgy. Apopong, General Santos City.

SOCOTECO II is the largest electric utility in Mindanao and has the exclusive rights to distribute electricity in General Santos City and the municipalities of Glan, Malapatan, Alabel, Malungon, Kiamba, Maasim and Maitum, all in Sarangani Province; and the municipalities of Polomok and Tupi in South Cotabato.

The project costs ₱1.27 billion with 30% funded by equity and 70% funded by a six year term loan from Asia United Bank.

PSI started commercial operations last January 27, 2015.

Peakpower San Francisco, Inc.

peakpower-san-franciscoOn May 29, 2013, Peakpower Energy, Inc. (PEI) executed a Power Purchase Transfer Agreement with Agusan del Sur Electric Cooperative (ASELCO) whereby PEI will build and operate a 5.2MW diesel/bunker-fired power plant; ownership of which will be transferred to ASELCO at the end of the 15-year cooperation period at no extra cost. The power plant is located within the ASELCO Head Office compound in Brgy. San Isidro, San Francisco, Agusan del Sur. PEI has transferred these rights to Peakpower San Francisco, Inc. (PSFI).

ASELCO’s franchise area includes the City of Bayugan and municipalities of San Francisco, Prosperidad, Rosario Trento, Bunawan, Veruela, Sta. Josefa, Loreto, Sibagat, Esperanza, Talacogon, Las Paz and San Luis, all in Agusan del Sur.

The project costs ₱497 million with 30% funded by equity and the rest funded by a seven year term loan from Asia United Bank.

PSFI started commercial operations last February 26, 2015.

Hydro Link Projects Corp.

hlpcHydro Link Projects Corporation (HLPC) is a wholly-owned subsidiary of A Brown Company, Inc. (ABCI). HLPC’s primary purpose is to engage in, conduct, and carry on the business of developing, constructing, operating, and maintaining hydroelectric plants and systems and other power generating or converting stations, manufacture, operation, and repair of related mechanical and electric equipment.

The Project has already acquired the Hydropower Service Contract (HSC) and its corresponding Certificate of Registration and with the completion of the Feasibility Study, the project applied for the Declaration of Commerciality.

The application for Water Permit has been filed and posted to government agencies with involvement in water-related project as a requirement of National Water Resources Board (NWRB). IN the application for water permit, NWRB requires developer the submission of “River System Ecological Study and Sustainability Plan.” This additional requirement of NWRB will be included during the conduct of the environmental study.

Likewise, procurement for other permitting and approvals shall follow which include:

• Environmental Study

• Endorsement from NCIP for FPIC

• Endorsement and Resolution of Support from LGUs

• Public Consultation

The acquisition of the above approvals are the requirements of DOE to make the Project advance to the next phase of project implementation which is the development/commercial stage. Afterwards, the project is ready for construction.

HLPC has several prospect sites for hydroelectric generation across the Philippines pursuant to ABCI’s Vision of energizing the country’s development.

 

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