Vol. XXI, No. 195 [ Business World Online ]
Tuesday, May 6, 2008 | MANILA, PHILIPPINES
MASINLOC, Zambales — The provincial government got over P200 million in land transfer taxes from the recent sale of the 600-megawatt Masinloc coal-fired power thermal plant in Barangay Bani, here.
In a ceremony last Monday, Masinloc Power Partners Co. Ltd. (MPPCL) President Mathew Bartley and MPPCL Chief Finance Officer Hassaan Mirza Zambales handed to Zambales Governor Amor Deloso the symbolic check amounting to P204,600,000 for tax payment. Mr. Deloso said that the revenues derived from the sale of the Masinloc would be used to fund various projects to improve social services and infrastructure.
The facilities and operations of the 600-megawatt Masinloc Coal-fired Thermal Power Plant was also formally turned over to its new owner, AES Corporation.
Mr. Bartley said that AES has already paid the whole amount of $930 million to the Power Sector Assets and Liabilities Management Corp., representing the total winning bid price of the coal plant last month.
AES is also eyeing expansion and upgrade of the plant from 600 MW to 1,200 MW in the next five years of operations.
In a press statement, AES President and Chief Executive Officer Paul Hanrahan said the "acquisition is a key component of our strategy to invest in areas where there is a significant need for new capacity, and offers AES an excellent entry point into the growing Philippine economy through the lowest cost thermal plant in the system."
"This is a particularly attractive investment because the existing facility has the infrastructure in place to allow AES to add an additional 600 MW of generation capacity," the statement added.
Approximately 60% of the electricity generated by the plant will be sold to electricity distribution companies, cooperatives and special economic zones via power supply contracts.
The remaining capacity will be sold through the Wholesale Electricity Spot Market, or WESM.
Originally built in 1998, in the closing months of the administration of former President Fidel V. Ramos, the plant utilizes coal from a variety of sources in the Pacific Rim. — RMG
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