ACR allots P21-billion capex for two power projects
By Lenie Lectura – June 11, 2019
from Business Mirror
ALSONS Consolidated Resources Inc., (ACR) of the Alcantara Group has earmarked P21 billion in capital expenditure (capex) for two power projects lined up for completion in two to three years.
“This year, we’re implementing Siguil. That’s going to be the biggest capex. Siguil is a P4-billion project, in which our equity is P1 billon,” ACR Executive Vice President Tirso G. Santillan said.
Financing for the remaining P3 billion has been identified.
“We have already lined up project financing for that, with the balance of the Siguil project. We have a mandate,” said Robert Yenko, ACR chief financial officer.
Siguil is a 14.5-megawatt (MW) run-of-river hydroelectric power project located at Siguil River basin in Maasim. The P4.25-billion power project is the company’s first renewable-energy project.
ACR will also spend a total of P17 billion to develop the 105-MW San Ramon Power Inc. baseload coal-fired power plant in Zamboanga City.
“San Ramon will actually come next year. We have spent money on San Ramon. We’ve spent about P400 million already on San Ramon. We will spend more in December, when we give our notice to proceed. Then we’re planning to borrow money by March 2020. That’s a P17-billion project,” Santillan said.
ACR earlier posted a net income of P104.4 million in the first quarter of the year, slightly lower than the P103.14 million it posted in the same period a year ago mainly on account of lower revenue.
The financial results in the first three months of the year showed P1.226 billion in revenues, slightly lower than the P1.678-billion revenues in the same period a year ago.
“The company hopes to recover the shortfall when the Sarangani Energy Corp. Unit 2 comes online in the second half of this year,” the company said in its financial report.
The SEC baseload coal-fired power plant in Maasim, Sarangani province, remains the key driver of revenue and income for ACR. The SEC plant’s first unit with a capacity of up to 105 MW began operating in April 2016 and currently delivers power to more than 3 million people in the General Santos-Sarangani area and other parts of Mindanao.
The plant’s second section is currently in the commissioning stage and is targeting to start commercial operations in the second half of 2019.
SEC 2 is set to contribute another 105 MW of baseload power to benefit an additional 3 million people in various parts of Mindanao when it begins operating later this year.
