Mirant fulfills pledge to energize Mindanao

Mirant Philippines Inc. has fulfilled its commitment of giving over P100 million for the Philippine National Oil Co.’s (PNOC) energization program in Mindanao.

PNOC president Pedro Aquino Jr. lauded Mirant’s firm assurance to fulfill its committed electrification program.

"We are glad that Mirant Foundation was able to pay up for its energization program before the expected turnover to the new Japanese owners next month," he said.

According to Aquino, Mirant was able to give P106 million out of the P120 million budget. "They promised to remit the remaining amount soon."

PNOC earlier partnered with Mirant Foundation for the electrification of 83 barangays in the Alliance for Mindanao Off-Grid Renewable Energy (AMORE) areas, which benefited a total of 2,490 families. 

As of October 2006, PNOC has already installed a total of 10,729 solar home system units in various regions throughout the country, with Mindanao hosting 23 percent of the total project installation.

The turnover of Mirant’s assets to their new Japanese owners Tokyo Electric Power Corp. and Marubeni is expected to be carried out in the middle of this year or as soon as the Sual power plant (part of the Mirant assets that were sold to the group) goes on-line in May or June this year.

The new buyers of the Mirant assets have also expressed their commitment to continue the company’s social development program for the country.

"In the same manner that Mirant had shown its commitment to the President’s rural electrification program, the government also anticipates that the new owners will continue and deepen this social commitment to help improve the economy in the rural areas," Energy Secretary Raphael P.M. Lotilla said.

The assets of Mirant Philippines include the 1,218-megawatt (MW) coal-fired power plant in Sual, Pangasinan, the 735-MW coal-fired power plant in Pagbilao, Quezon and a 20-percent stake in the Ilijan, Batangas natural gas facility.

After the payment of related debt (estimated to be $642 million at the closing), Mirant is expected to gain net proceeds $3.152 billion.