Posted on October 21, 2013 10:44:50 PM [ BusinessWorld Online ]
DMCI Power Corp., a unit of Consunji-led DMCI Holdings, Inc., has bagged the contract to build a 15-megawatt (MW) diesel-fired plant to supply residents of Oriental Mindoro, the parent firm said in a disclosure yesterday.
DMCI Holdings said: “Oriental Mindoro [Electric] Cooperative, Inc. (ORMECO) has recently awarded the electricity supply agreement (ESA) involving the construction, operation and maintenance of the 15-MW bunker-fired diesel power plant in Calapan City… to the corporation’s subsidiary DMCI Power…”
It added the ESA has a term of 20 years.
Last month, ORMECO President Audel A. Arago said DMCI Power had been declared as the winning bidder in an auction conducted by ORMECO last June 28 for the construction, operation and maintenance of a power plant.
The formal award, however, had been subjected to confirmation by the Energy department that the power distributor conducted a competitive selection process.
Last March, ORMECO started seeking offers for the development of the power project where eight bidders initially showed interest.
However, only three firms -- DMCI Power, Sta. Clara Power Corp. and Mindoro Grid Corp. -- participated in the auction.
The evaluation of the technical working group, special bids and awards committee, and board of directors showed that DMCI Power submitted the lowest bid and complied with the terms of the bidding, according to Mr. Arago.
Besides DMCI Power, another company will develop a power plant to provide more electricity in the province.
Last July Ormin Power, Inc. (OPI) conducted a groundbreaking ceremony for its 10-MW hydro power plant that is expected to be operational by 2016.
The P1.5 billion power plant -- which will be built in the municipality of San Teodoro -- will use water from Inabasan River.
OPI, a firm based in Calapan City, currently operates a 6.4-MW diesel power plant in the province.
DMCI Power is a wholly owned subsidiary of DMCI Holdings, which in turn is the holding company of Consunji family’s businesses that include construction and mining.
DMCI Holdings’ net income more than doubled to P15.06 billion in the first half from P7.39 billion in the same six months a year ago. In the same comparative periods, revenues dropped by 3.24% to P26.58 billion from P27.47 billion, while cost of sales slid by 4.04% to P17.09 billion from P17.81 billion.
Shares of the company gained 15 centavos or 0.28% to close P54.15 apiece yesterday from P54 each on Friday last week. -- Claire-Ann Marie C. Feliciano