Global Power sets capital for Alsons equity acquisition

Global Business Power Corporation (GBPC) earmarks capital spend of R5 billion for the acquisition of 50-percent equity stake in Alsons Thermal Energy Corporation (ATEC), the holding firm of the power plant ventures of Alsons Consolidated Resources, Inc. of the Alcantara Group.

According to GBPC President Jaime T. Azurin, the company will need to tap loans for the ATEC acquisition, and discussions with targeted banks have been ongoing.

Prior to the Alsons deal, he noted that the capital outlay of the company had just been confined yet at R200 million because it has no major projects that are being advanced into construction within this year.

That transaction, he said, somehow beefed up the company’s investment plans as it will now be fully involved in the second phase of the Sarangani Energy Corporation (SEC) power project.

The SEC-2 facility will be of another 105-megawatt capacity that is targeted for completion in year 2019. The first 105MW unit was first set on commercial operation last year.

Azurin noted that ATEC’s San Ramon power project in Zamboanga, with targeted capacity of another 105MW, will enjoin company shareholders to firm up implementation plans by next year.

Beyond projected economic growth in Mindanao, the other key driver for the project taking off from blueprint will be the concretization of the planned interconnection of the Visayas and Mindanao grids.

“If that project pushes through, it will need that power plant there,” Azurin said, emphasizing that in grid interconnections, baseload facilities close to the landing sites of the link-up would be critically needed.

Furthermore, he stressed that the “Build, Build, Build infrastructure plan” of the Duterte administration could “spur economic growth in the area,” and such will eventually require power capacity additions.