Author: Abrown Admin

KUALA LUMPUR—A Brown Company, Inc. (BRN), together with its Consortium partners, has entered into a cooperation agreement with MTD Philippines, a subsidiary of infrastructure conglomerate AlloyMTD of Malaysia, for the development of the PNR East-West Rail Project.

At the signing, Dr. Walter W. Brown, Chairman Emeritus of A Brown, expressed his thanks to the Malaysian and Philippine governments. “We are grateful for the opportunity to be of service to the Filipino working class and commend the current administration for responding quickly to a need that has been postponed for too long,” he said. “We commit to complete the project before the end of the President’s term.”

The project proposal was prepared by East-West Rail Transit Corporation (EWRTC), the Consortium formed by A Brown and Private Equity Investment and Development (PEID) Corporation with Systra Philippines (member of the Systra Group of France) providing the technical assistance. It will be proposed to Philippine National Railways to alleviate the worsening traffic conditions in Metro Manila.

“We see a lack of appreciation of the fact that due to the large volume of cars and the restricted number of roads, the bulk of our people are forced to travel two to three hours each way. So much time and effort is lost. The only way to solve it in the long-term is mass transport. We want to see the use of the most appropriate mode of transport to bring people without cars to their destinations within a reasonable time.”

Mr. Roel Castro, the newly appointed President of A Brown as of September 2016, said that the project aims to provide a “hassle-free service” for the commuters. “For a number of reasons, we’re seeing a lot of problems in the existing trains right now,” he said. “Mass transportation is among the important infrastructure projects that are need-based, and we see a great opportunity there. This is all part of A Brown’s platform for contributing to the country’s development via infrastructure projects. There’s power, water, and transportation.”

A Brown is a key player in real estate and agribusiness in Southern Philippines with investments in energy, mining, and infrastructure. The company has established its expertise in project management through its subsidiaries in the power sector. Palm Concepcion Power Corporation (PCPC) is a 135MW coal-fired plant in Iloilo with a second unit in the pipeline. Peakpower Energy Inc. (PEI) has two bunker-fired peaking power plants: Peakpower Soccsargen Inc. in General Santos and Peakpower San Francisco in Agusan del Sur with a third plant in Bukidnon currently in the preparation stages. These projects were established to supplement the shortfall in the electricity supply of the region. Hydro Link Projects Corporation is developing a hydropower plant in Surigao del Sur. Also underway is the bulk water supply project of A Brown in Opol, Misamis Oriental in partnership with the local government to finally address the town’s need for its independent water supply system.

On the other hand, MTD Philippines, through AlloyMTD Malaysia, is a leading Asian infrastructure conglomerate operating in the global market, actively present in Saudi Arabia, UAE, USA, UK, Australia, Indonesia, Singapore, Sri Lanka, India, Thailand, Chile, China, and the Philippines. The company has a vast experience in civil engineering and construction, manufacturing, infrastructure concessions, energy, port operations, real estate and property development, and operations and maintenance. Among its successful projects in the country is the rehabilitation and expansion of the South Luzon Expressway.

“The East-West rail project is something that Metro Manila needs urgently because in involves moving people in big quantities. I think it’s a very important corridor because it connects to MRT7 and LRT1 and has a promising volume of riders,” said Engr. Isaac David, MTD Chairman. “We want to participate in this effort towards solving the traffic congestion. MTD is confident with the Consortium’s track record and are excited to be partnering with them.”

PEAKPOWER Energy, Inc. expects its plant expansion in General Santos City to start operating by yearend, while it targets another plant in Bukidnon to launch by end-April 2017, its parent firm said.

A Brown Co., Inc., which owns 20% of Peakpower Energy, also disclosed in its financial report that a third plant in Agusan del Sur will start commercial operations for a new unit by the end of May 2017.

The listed diversified company houses its investments in bunker-fired power projects under Peakpower Energy, which was formed in 2013 to generate peaking power for electric cooperatives in Mindanao.

Peakpower Energy has three wholly owned subsidiaries on the island, each holding build-operate-maintain-and-transfer agreements for new plants that will last for 15 years through its subsidiaries.

PeakPower Soccsargen, Inc., which has a 20.9-megawatt (MW) diesel/bunder-fired power plant in General Santos City, has started its 13.9-MW expansion and is awaiting the delivery of two units of Wartsila engines by next month.

“Target commercial operations for the new units will be end of December 2016,” the parent company said.

The subsidiary has a 15-year agreement with the South Cotabato II Electric Cooperative, the largest distribution utility in Mindanao with a franchise area covering General Santos City, the municipalities of Polomolok and Tupi in South Cotabato. It launched in January last year.

Peakpower San Francisco, Inc., with a 5.2-MW diesel/bunder-fired power plant in San Francisco, Agusan del Sur, is also awaiting the delivery next month of a single unit Wartsila engine.

The plant has a 15-year agreement with Agusan del Sur Electric Cooperative, Inc. whose franchise area covers 13 municipalities including Bayugan City. The new unit is expected to start operating by May 2017.

“San Francisco serves as the primary commercial and service center in the province of Agusan del Sur, being situated at the crossroads leading to other production centers in the region,” A Brown said.

The subsidiary in Manolo Fortich, Peakpower Bukidnon, Inc., will be the first to start commercial operation, by the end of April 2017. Its 10.4-MW diesel/bunker-fired power plant has a 15-year agreement with Bukidnon II Electric Cooperative, Inc., which serves the highlands of the province.

A Brown said another unit, Palm Concepcion Power Corp. (PCPC), is in the initial stage of pre-construction activities of the second 135-MW coal-fired power plant in Concepcion, Iloilo.

“Construction is estimated to take two to three years after commissioning of the first unit,” A Brown said.

PCPC’s plant site and support units are programmed for two units of power generators. The first unit has been synchronized with the Visayas grid as of May 2016.

“Full commercial operations are slated on the last week of August 2016, delivering power supply to Panay, Negros, and the rest of Visayas,” the parent firm said.

It added that 10 distribution utilities and electric cooperatives have signed up with PCPC for their baseload power capacity needs.

For its power generation outlook, A Brown said that even with the additional 135 MW of supply PCPC’s second unit, a deficit still looms from November 2017 onwards.

“By 2020, projections are showing a shortfall of about 700 MW with no power projects projected to start operations after September 2016. With a supply deficit for the projected demand growth of the region, there is plenty of room to invest in the Visayas power market,” it said. —Victor V. Saulon, BusinessWorld

OPOL, Misamis Oriental—A simple yet historic groundbreaking ceremony for the P500-million investment for the bulk water supply project of Opol was held last Wednesday, April 20 by the Lumayagan River in Barangay Tingalan.

AB Bulk Water Company Inc, a new subsidiary of A Brown Company, Inc. (ABCI), will undertake the bulk water supply project in partnership with the local government of Opol under the Private-Public Partnership scheme.

ABCI Executive Chairman Dr. Walter Brown and Pesident Robertino Pizarro led the groundbreaking ceremony.

“Mr. Pizarro and I are delighted to be able to participate in the first truly Private-Public venture, of huge importance—the development of water resources,” said Dr. Brown in a press statement. “We are very pleased with the level of cooperation of the local government of Opol. By working together, we would be able to improve the welfare of the local community and the province.”

Dr. Brown expressed hope that the project will be an example for other local communities. “Potable water is an essential and central ingredient in the life of any community, especially in light of the ongoing El Niño,” he said. “Let this groundbreaking be a reaffirmation of our commitment to seeing this project to completion.”

Meanwhile, Opol town mayor Max Seno expressed thanks to ABCI for its work in choosing Opol town as their partner in this latest endeavor. “The development of a bulk water project will trigger inclusive growth for the municipality,” he said.

A flagship project of Mayor Seno, the water system is expected to benefit some 25,000 residents of Opol and nearby areas like El Salvador City and Laguindingan, Misamis Oriental.

The landmark event was attended by municipal officials of Opol led by Mayor Seno, Vice Mayor Thatsie Ortigosa, members of the Sangguniang Bayan, and bank representatives. Also on hand were barangay officials from Opol poblacion, Awang, Bagocboc and host barangay Tingalan.