Corporate News

Filinvest unit to proceed with coal-fired power plant in Misamis Oriental

Posted on November 21, 2013

A UNIT of Filinvest Development Corp. (FDC) is set to proceed with the construction of its planned 405-megawatt (MW) coal-fired power plant in Misamis Oriental.

In a statement yesterday, FDC Misamis Power Corp. said it held the groundbreaking ceremony in the municipality of Villanueva for the new circulating fluidized coal thermal plant, which involves three units with a capacity of 135 MW each.

“The 405-MW project, currently the biggest power project in Northern Mindanao, will meet the increasing demand for energy in the region and is expected to attract more investments and development for the province,” the statement read.

“I am very optimistic that the FDC Misamis project will generate jobs and economic opportunities not only for Villanueva but for the entire province as well,” the statement quoted Villanueva Mayor Julio T. Uy as saying.

“We make it a policy in our town to ensure full cooperation with investors because development in Villanueva means development for Misamis Oriental,” he added.

The 405-MW power plant -- which was estimated to cost about P20 billion-P30 billion -- is expected to be operational in 2016.

FDC Misamis said the electricity generated by the first two units of the power plant will be bought by 17 electric cooperatives that serve Misamis Oriental, and other parts of Mindanao.

“Agreements with other customers are currently ongoing for the third unit,” the company said.

With the additional capacity, FDC noted that this will “ensure the supply of reliable and competitively priced power for the province and the rest of the region.”

“We are one with the government in ensuring reliable and competitively priced power for one of our fastest growing regions in the country. The Mindanao grid needs to have enough new capacity to ensure longevity of power sources without the fear of blackouts occurring in the region,” FDC Misamis President Jesus N. Alcordo said in the same statement.

Last month, FDC awarded the contracts for engineering and procurement, as well as the construction for its power plant to several firms. These are: First Northeast Electric Power Engineering Corp. of China, NEPC Power Construction Corp., Alstom and Engineering Equipment, Inc.

Last April, FDC Misamis signed a 28-year land lease agreement with Phividec Industrial Authority for a 84.4-hectare land area where the coal plant will be constructed.

FDC Misamis is a subsidiary of FDC Utilities, Inc., which in turn is the utilities arm of the Gotianun-led Filinvest Group. The coal plant is the first power generation project of the group.

FDC booked a P4.31-billion net income as of September, up 25.66% from P3.43 billion in the same nine months last year. Total revenues and other income increased 24.39% to P25.55 billion from P20.54 billion, while cost increased 18.60% to P8.67 billion from P7.31 billion.

Operating expenses jumped 31.97% to P11.97 billion from P9.07 billion.

Shares of FDC closed at P4.30 apiece yesterday, unchanged from its finish on Tuesday. -- CAMCF