Meralco PowerGen picks Japanese partner for $3-B Atimonan project

Meralco Powergen, the power generation arm of Manila Electric Company (Meralco), has chosen a Japanese partner for its $3-billion Atimonan ultra super critical coal-fired power project in Quezon province, but signing of a definitive agreement will need to wait until regulatory approval on the venture’s power supply deal.

Meralco Chairman Manuel V. Pangilinan revealed the decision, but did not divulge the incoming foreign joint venture partner.

It has been previously reported though that the last groups they had been choosing from were one local company and a Japanese firm – and sources indicated “it was the Japanese partner that Meralco had settled with.”

Meralco President Oscar S. Reyes qualified that the selection of Meralco PowerGen’s foreign partner in the 1,200megawatt Atimonan project “is consistent with our strategy of having a strong joint venture for our projects.”

He stressed that the company prefers to “partner with reputable, credible strategic investor who can bring value – like technology and experience into the project.”

Reyes re-affirmed that the partner has been selected, “but we have not exactly signed” as the parties are still waiting for the regulatory go-signal on the power supply agreement (PSA) of the Atimonan project.

In a project brief provided by Meralco PowerGen, it was emphasized that the PSA had been filed with the Energy Regulatory Commission (ERC) three years ago, but the approval is still being awaited – along with the resolution of a related case filed with the Supreme Court.