4 bidders vie for Alsons Power coal plant in Zamboanga City

By Lenie Lectura – December 14, 2018
from Business Mirror

ALSONS Power Group, the energy business of the Alcantara family, has trimmed the list of interested engineering, procurement and construction (EPC) contractor for its 105-megawatt (MW) San Ramon Power Inc. (SRPI) coal-fired power plant in Talisayan, Zamboanga City.

“We now have four bidders. The fifth one was not able to comply with some of the bid requirements,” Alsons Power Vice President for Project Development Joseph Nocos said.

The four global construction and engineering companies are Dongfang Electric International Corp. headquartered in Chengdu, China; Singapore-based Jurong Engineering Ltd.; Northeast No.1 Electric Power Construction Co. Ltd. (NEPC 1), a wholly owned subsidiary of China Energy Engineering Group; and Shandong Electric Power Construction Co. (Sepco III), a subsidiary of Power Construction Corp. of China. “Evaluation is ongoing. They submitted technical proposals which we are evaluating now. The final selection and signing of the contract is in April,” Nocos said.

Shortly after an EPC contractor is selected, the company will award a Notice to Proceed for the P17-billion power project, which will provide baseload power to Zamboanga City and nearby areas.   Project financing will be 70 percent, roughly P12 billion, sourced from banks and 30 percent from internally generated funds.

Nocos said the company has tapped Land Bank of the Philippines as the lead arranger.

“Hopefully, financial closure is in June, before the start of construction,” he said.

Construction is expected to begin in the first half of 2019, while commercial operations are set to commence in 2022. Once operational, the plant will play a crucial role in stabilizing power supply in the Zamboanga Peninsula.

Alsons Power is Mindanao’s first and most experienced independent power producer. It currently operates four power facilities in the island with a total generating capacity of 363 MW, serving key cities such as Cagayan de Oro, Davao, Iligan, General Santos and Zamboanga.  Alsons Power is also entering the renewable-energy sphere through run-of-river hydroelectric power projects with a total hydro capacity potential totaling more than 145 MW in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces, and Surigao del Sur.