Global Power, Vivant ink pre-development deal on 670MW La Union plant

Asubsidiary and project corporate vehicle of listed firm Vivant Corporation has inked a pre-development agreement (PDA) for planned partnership on the 670-megawatt coal plant project led by Global Business Power Corporation (GBPC) sited in Luna, La Union.

Vivant’s entry into that power facility development venture will be via corporate entity Vivant Integrated Generation Corporation (VIGC).

Under the deal, it was stated that the partners will “jointly participate through Lunar Powercore, Inc. in a project under a special purpose vehicle Global Luzon Energy Development Corporation.”

As further noted, GLEDC shall undertake “the financing, design, procurement, construction, testing, commissioning, operation and maintenance” of the project.

For the propounded pre-development activities, VIGC and GBPC earmarked an amount of R450 million, according to Vivant’s disclosure to the Philippine Stock Exchange.

The Pangilinan group’s selection of Vivant as a partner on its La Union power venture had been deemed “strategic approach” because the latter is already a well-entrenched industry player at the hostprovince via its Bauang thermal power plant there.

That will then give the investing parties some sort of leverage when it comes to dealing with “community issues,” considered crucial in development of critical power projects.

The JV firm will still need to secure the environmental compliance certificate (ECC) for the planned facility development.