A UNIT of listed firm Vivant Corp. has signed a pre-development agreement with Global Business Power Corp. (GBP) for a two-unit coal-fired power plant in Luna, La Union province with a combined capacity of 670 megawatts (MW).
In a disclosure to the stock exchange, Vivant said Vivant Integrated Generation Corp. (VIGC) and GBP have allocated P450 million for the activities under the pre-development agreement.
The two will jointly participate in the project through Lunar Powercore, Inc. in the project under a special purpose vehicle Global Luzon Energy Development Corp. (GLEDC).
GLEDC will undertake the financing, design, procurement, construction, testing, commission, operation and maintenance of the coal-fired power plant.
VIGC is a subsidiary of Vivant Corporation through wholly owned Vivant Energy Corp.
The project is part of GBP’s target to reach a capacity of 1,500 to 2,000 MW in five years, a goal that is around double its current 854 MW.
GBPC has a total gross capacity of 854 MW in the Visayas through subsidiaries Panay Energy Development Corp. (PEDC) with 314 MW, Toledo Power Co. with 182 MW, Cebu Energy Development Corp. with 246 MW, Panay Power Corp. with 104.5 MW, and GBH Power Resources, Inc. with 7.5 MW.
The total is a significant increase from its 185.5 MW capacity in 2003 when it was starting out as Mirant Global Corp.
In June, Alsons Consolidated Resources, Inc. announced GBP’s acquisition of a 50% stake in Alsons Thermal Energy Corp. (ATEC), which holds the Alcantaras’ baseload coal-fired power plant assets. ATEC owns 75% of the 210-megawatt (MW) Sarangani Energy Corp. coal-fired power plant in Maasim, Sarangani province. — Victor V. Saulon