MANILA, Philippines - Listed Alsons Consolidated Resources Inc. (ACR) said on Tuesday that it is finalizing a shareholder agreement for Toyota Tsusho Corp.’s (TTC) 25-percent equity stake in Sarangani Energy Corp. (SEC).
In a disclosure to the Philippine Stock Exchange, ACR said the agreement is expected to be concluded before the end of August this year.
ACR said it will hold 75-percent equity in SEC, with TTC owning 25-percent equity in the company once the shareholders agreement and other necessary documents come into final effect.
SEC is the developer and owner of the power plant in Maasim, Sarangani.
ACR said the first phase of the Sarangani power plant will generate 105 megawatts (MW) of electricity.
ACR said SEC has a power sales agreement with South Cotabato II Electric Cooperative Inc. (Socoteco II) to provide up to 70 MW of electricity to Socoteco’s customers.
Socoteco II is, according to ACR, the power, distribution utility servicing the entire province of Sarangani, General Santos City, and two key municipalities in South Cotabato, ACR said SEC has also signed supply agreements with Agusan del Norte Electric Cooperative Inc., the Agusan del Sur Electric Cooperatives Inc., and Davao del Norte Electric Cooperative Inc.
ACR said the first phase of the SEC power plant commenced the design and engineering process of construction in June this year.
ACR added that the first phase is expected to begin operations in early 2015.
The SEC power plant, with a full two-phase capacity of up to 210 MW, is intended to help provide a long-term solution to the current power shortage in Mindanao.
Aside from the SEC power plant, the Alcantara Group controls and operates the 100-MW West Mindanao Power Corp. bunker-fired power plant in Sangali, Zamboanga City, and the Southern Philippines Power Corp. 55-MW bunker-fired power plant in Alabel, Sarangani province.
The Alcantara Group is also developing the 100-MW San Ramon Power Inc. plant in San Ramon, Talisayan, Zamboanga City, that will have the capacity to generate up to 100 MW of electricity for Zamboanga City and nearby areas. The SRPI power plant is expected to be operational by 2016.
In the first quarter of the year, the Alcantara Group, through its subsidiary Mapalad Power Corp., was granted the right to reacquire the 102-MW Iligan diesel power plant from the city of Iligan.
The transfer of ownership, ACR said, is currently undergoing procedural review by the Commission on Audit.
ACR said rehabilitation and operation of the Iligan plant will commence once the transfer is finalized.
Apart from power-project development and power-generation management, the Alcantara Group is also engaged in property development, aquaculture, agribusiness, and services. The group has been an active player in the economic development of Mindanao and the rest of the Philippines for more than 50 years.