BUSINESSMAN Gregorio Ma. Araneta III is moving closer to start the construction of an 800-megawatt (MW) pumped storage hydroelectric facility in Pangil, Laguna as he engages with foreign firms interested to partner for the project.
In an interview with reporters last week, Mr. Araneta said at least two companies were keen to participate in building the power plant. He identified them as China CAMC Engineering Co., Ltd. and Singapore-based Equis Funds Group.
“Ngayon naglalabanan yung gusto pumasok… I expect by midyear magkasundo kami kung sinong kukunin naming partner. Yung Chinese ang pinaka-aggressive [Right now those that want in are battling it out… I expect by midyear we would have decided on who we’re taking in as partner. The Chinese firm is most aggressive],” he said.
The project is being pursued by Gregorio Araneta, Inc. (GAI) subsidiary GA Energy.
On its website, China CAMC said its business is mainly focused on providing EPC (engineering, procurement and construction), investment and trade. Its portfolio of projects includes an 11-megawatt hydropower project in Mongolia.
Equis, on the other hand, has been GAI’s partner in its solar projects in Ilocos and Leyte. The company said on its website its exposure in hydropower projects is through its investments in Singapore-headquartered Vena Energy and India-based Dans Energy.
GAI expects the construction of its hydropower plant to take three-and-a-half to five years once it kicks off. While the planned capacity is for 800 MW of pump storage, Mr. Araneta said this may still be expanded later on.
The hydropower plant in Laguna is part of Mr. Araneta’s plan to build a network of renewable energy across the country, which includes the solar power plants and a previously proposed liquefied natural gas (LNG) plant in Bataan.
The plan was proposed by Mr. Araneta’s Energy Oil and Gas Holdings, Inc. (EOGHI), which is reported to be looking at building a 600-MW LNG plant expandable to up to 2,000 MW. The company had signed a memorandum of agreement with the Philippine National Oil Co. (PNOC), through PNOC Alternative Fuels Corp., during the previous administration for the project. But PNOC said the deal expired in June 2015.
PNOC, under the Duterte administration, then started negotiating with EOGHI for a lease agreement for the project, as the LNG plant will involve renting a portion of the 530-hectare property owned by the state-led agency. However, the terms were rejected by PNOC in 2017, leading to a hold up of the proposal.
Mr. Araneta said last week there are cases in court against PNOC seeking to resolve the Bataan deal. — Denise A. Valdez
