Metro Pacific nearing deal for biomass project
By Arra B. Francia
Reporter
METRO PACIFIC Investments Corp. (MPIC) looks to close the deal for a biomass project by the end of the month, which it hopes would be among the first of many projects in the renewable energy sector.
“We are also doing a biomass project that is close to signing, it will be using agriculture inputs,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said in a press briefing in Makati last week.
MPIC Chief Finance Officer David J. Nicol said the project will have the capacity to produce “a few single digit megawatts.”
“It is the first of what we hope could be many, it’s an experiment. We have to see if it works, if it does it’s very quick payback and profitability, so much more immediate in terms of returns generation than some of the projects in the segment,” Mr. Nicol said.
The biomass project is part of the company’s plans to be a significant player in the renewable space.
The listed infrastructure conglomerate, in a consortium with Covanta Energy LLC and Macquarie Group Ltd., has currently partnered with the local of government of Quezon City for an integrated solid waste management facility (ISWM), which if realized would be its first renewable energy project.
The facility looks to process up to 3,000 metric tons a day from Quezon City’s municipal waste, converting it to around 42 megawatts that can power some 60,000 to 90,000 homes.
Mr. Lim said the P15-billion project that started five years ago will undergo Swiss challenge by next year, with competitive bids scheduled to be submitted by January.
“We are hopeful to be able to proceed with the implementation shortly after,” Mr. Lim said.
MPIC is also conducting studies for a similar waste-to-energy project in Pampanga, along with Chinese partner China Everbright Group.
“The study has been completed, we have joined forces with a Chinese firm, China Everbright, to conduct this study, right now the evaluation is undergoing the results. We haven’t got a business plan for Pampanga at the moment, we’re still developing one,” Mr. Lim said.
The MPIC executive noted that they continue to look at other large areas with similar waste volumes as Quezon City.
“The challenge in those areas is that the volume is spread out, it’s not concentrated unlike in Metro Manila where you get about 10,000 tons all in one area every day. In other areas, you’d be lucky to get 700 tons. The technology is different for them,” Mr. Lim explained.
Power generation is among MPIC’s core interests, alongside toll roads, water, railways, hospitals, and logistics. It posted a core net income of P12.2 billion in the first nine months of 2018, 8% higher year-on-year, driven by a 8% increase in system-wide revenues to P302.9 billion.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.