Sarangani Energy eyes Phase 2 of coal power project in Q1 2016

MANILA, Philippines - Sarangani Energy Corp. (SEC) of Alsons Power group is planning to start the construction of the second phase of the 210-megawatt (MW) coal-fired power plant in the first quarter of 2016.

Alsons Power project implementation vice president and head of coal operations Nicandro Fucoy said the company hopes to achieve financial close by the end of 2015 to first quarter next year for the 105-MW Phase 2 SEC plant.

“We’re looking at, to be safe, early first quarter next year,” he said. “Once we have financial closing, we can issue the notice to proceed to our contractor,” Fucoy said.

Fucoy said SEC is currently bidding out the engineering, procurement and construction (EPC) contract to determine the final cost of the project. The company is open to other contractors to build the plant.

“We are in the process of bidding it out because in order to financially close, we have to have the EPC contract cost. We want to keep our options open so we are bidding it out,” he said.

The investment cost of the whole SEC coal-fired power plant is pegged at $570 million, making it the the single largest investment in the Province of Sarangani and the entire Region 12.

For the Phase 1 of the SEC plant, the project cost is $309 million while the contractor is Daelim Industrial, Ltd. of Korea.

Fucoy said the EPC contractor “could be the same if Daelim wins” the bidding.

The Phase 2 of the SEC plant is targeted to start commercial operations by 2018.

Its completion will have the SEC plant running in full capacity of 210 MW, which will provide power to six million people.

It will cover the provinces of Sarangani, Compostela Valley, Agusan del Norte, Agusan del Sur, Davao del Sur, Zamboanga del Norte and Zamboanga del Sur; cities and municipalities in Davao del Norte and South Cotabato; and key areas in Misamis Oriental and North Cotabato.

The Alsons power unit also has options to expand its power project as the plant only occupies 28 hectares of the 54.6-hectare Kamanga Agro-Industrial Economic Zone, Fucoy said.