San Buenaventura plant on track to start operations by mid-2019
CONSTRUCTION of the 455-megawatt (MW) San Buenaventura power plant in Quezon province is more than halfway completed, Manila Electric Co. (Meralco) officials said, noting the project is on track to start commercial operations by mid-2019.
“San Buenaventura is maturing. We’re in the middle of the construction period,” Oscar S. Reyes, Meralco president and chief executive officer, told reporters.
The supercritical coal- fired power plant in Mauban, Quezon, under San Buenaventura Power Ltd. Co. (SBPL), is a partnership between Meralco PowerGen Corp. (MGen) and New Growth BV, a subsidiary of the Electricity Generating Public Co. Ltd. or EGCO Group of Thailand.
“The construction of this power project is now on its 23rd month,” said Angelito U. Lantin, Meralco senior vice- president. “The project is on schedule and within the budget and we expect it to be in commercial operation by mid-2019.”
Mr. Lantin said MGen had started preparing for the next phase of the project — operation and maintenance — in the next few months.
The electricity generated by the plant will be sold to Meralco under a 20-year power supply agreement ( PSAs) that was approved by the Energy Regulatory Commission (ERC) in 2015, the same year SBPL secured a P42.15billion funding from a consortium of local banks.
In contrast to SBPL, three other power plant projects where MGen has a significant stake are unable to move to their next phases of development as they await ERC approval of their PSAs. Banks require an approved PSA before extending financing to make sure the project has a steady stream of cash.
Redondo Peninsula Energy, Inc. (RP Energy), in which MGen has a 47% stake, signed in April 2016 a PSA with Meralco for 225 MW of the first 300 MW unit, and 75 MW with the retail electricity supply business of Aboitiz Power Corp.
Therma Power, Inc., a unit of AboitizPower, owns 25% of RP Energy, while Taiwan Cogeneration International Corp. holds another 25%.
“This PSA with Meralco is still being processed at the ERC. It’s taking quite some time, it’s now on its 18th month,” said Mr. Lantin.
“RP Energy’s construction contracts and debt financing agreements are in place. At the moment, there are limited site works ongoing and this is in preparation for full construction works after we receive the PSA approval,” he added.
MGen previously said site development had been substantially completed for the RP Energy’s two-unit circulating fluidized bed coal-fired power plant, each with an identical capacity of 300 MW.
Atimonan One Energy, Inc. ( A1E) is also awaiting ERC- approval of its PSA. It is also evaluating and negotiating with the bidders for its engineering, procurement and construction work.