A UNIT of Vivant Corp. has secured the right to operate and maintain the 215-megawatt (MW) diesel bunker-fired power plant in Bauang, La Union, the listed company told the stock exchange on Thursday, Jan. 18.

 

Vivant said its subsidiary 1590 Energy Corp. (EC) bagged the contract after its submission of an unsolicited proposal to the provincial government of La Union. The proposal was subjected to a Swiss challenge, opening it to third parties that can match or exceed 1590 EC’s offer.

Vivant said, “(T)he Provincial Government of La Union awarded a five (5)-year lease contract to Vivant-led 1590 EC for the Bauang Diesel Power Plant, which supplies the peaking demand for power in the Luzon grid.”

Vivant, through subsidiaries and affiliates, has interests in companies engaged in renewable and non-renewable energy generation, power distribution, and retail electricity supply business. It owns 1590 EC through wholly owned Vivant Energy Corp.

Based on data from the Department of Energy, the Bauang plant has 21 units with a total installed capacity of 235 MW but a dependable capacity of 180 MW. 1590 EC is the plant’s operator under an independent power producer administrator (IPPA) arrangement.

The lease contract follows Vivant’s disclosure in December last year that its unit Vivant Integrated Generation Corp. had signed a pre-development agreement with Global Business Power Corp. to jointly participate through Lunar Powercore, Inc. in a power development project in Luna, La Union.

The project under special purpose vehicle Global Luzon Energy Development Corp. will undertake the financing, design, procurement, construction, testing, commission, operation and maintenance of a two-unit coal-fired power plant each with a capacity of 335 MW.

On Thursday, shares in Vivant rose 19.80% to close at 29.95 each.

Vivant’s businesses include Cebu Private Power Corp., which owns and operates a 70-MW diesel-fired power plant in Cebu; Delta P, Inc., owner and operator of a 16-MW diesel-fired power plant in Palawan; and Cebu Energy Development Corp., a project company that owns and operates a 246-MW coal-fired power plant in Toledo City, Cebu. — Victor V. Saulon

RELATED ARTICLESMORE FROM AUTHOR