Marubeni taking 20% stake in Calaca coal power plant

Japan’s Marubeni Corp. is entering as a strategic partner in the Semirara Mining and Power Corp.-Meralco PowerGen Corp. (MGen) team-up for the 2x350-megawatt coal-fired power plant in Calaca, Batangas estimated to cost as much as $1.4 billion, a Semirara official said.

In an interview with reporters, Semirara chairman and CEO Isidro Consunji said Marubeni is just waiting for head office clearance to formally take in a 20-percent equity in St. Raphael Power Generation Corp., the project company for the coal-fired plant.

“They are already our partner in Maynilad. They are already adept in the country’s power industry and they have shown serious interest (in the project),” Consunji said when asked why they chose the Japanese firm as partner.

Semirara, MGen and Marubeni have signed an agreement way back in April and asked for six months before officially becoming part of the consortium. The Japanese firm, however, asked for an additional 90 days for the finalization of its entry, DMCI officials said.

Currently, the SemiraraMGen team-up is finalizing the plant’s fuel characteristics necessary in designing the plant, which will determine the total cost of the power plant.

The group is in talks with US-based consultant Black & Veatch as contractor for the power project.

St. Raphael will utilize the subcritical pulverized coal technology, allowing it to use coal produced in Semirara’s mines.

But even if the partnerships and contractors are sealed, St. Raphael will have to wait for the Energy Regulatory Commission’s go- signal before constructing the power plant, Consunji said.

“We still have to wait for the ERC permit on our PSA (power supply agreement) and its permit on NGCP (National Grid Corp. of the Philippines) to put up a transmission line,” he said.

Once approved, it will be easy for the group to raise funds for the coal plant, Consunji said.

The new power plant will be the second phase expansion of the Calaca power plant under Sem-Calaca Power Corp., which has an initial capacity of 600 MW.

A new 2x150 MW power plant under Southwest Luzon Power Generation Corp. was completed last year and started commercial operations in February.