Belgian firm Suez Tractebel, the main proponent in Calaca Holdco Inc. (CHI), the winning bidder for the 600-megawatt (mw) Calaca coal-fired power plant, may consider expanding the newly-acquired generating asset by another 600 mw, a Power Sector Assets and Liabilities Management Corp. (PSALM) official said.
PSALM vice president for asset management and electricity trading Froilan Tampinco said one of the components of the bidding process is to inform the bidders of the potentials of the power plant they are buying.
“We gave them an idea on the potential of expanding Calaca considering the potential market in the south,” Tampinco said.
Tampinco said the area being served by the Calaca power plant would also benefit from the ongoing initiatives of the National Transmission Corp. (TransCo).
“There is a lot of potential for the Calaca power plant considering the rehabilitation of lines will be undertaken by TransCo,” he said.
Based on PSALM’s initial estimates, Calaca’s land area could accommodate another 600 mw of additional capacity.
“This will be for another 600 mw. The site can handle it,” he said.
But the PSALM official said the idea of expanding Calaca’s capacity is purely recommendatory and the new owners have the final discretion on their expansion plans.
“Its up for them to decide whether they will undertake it and defining when they will expand. It will be their business decision,” he said.
Tampinco, however, noted that the group of Suez-Tractebel is receptive of the possibility of expanding the facility in the future.
“They welcome the option but they did not firm up any plans,” the PSALM official said.
PSALM has been encouraging the winning bidders of Napocor’s power plants to expand the capacity of the facilities they bought.
It is, however, noted that the expansion will come after the winning bidders pay the 40 percent upfront payment to PSALM so they could have full control of the power plants they bought.
It was learned that Suez-Tractebel’s group will pay the 40 percent downpayment for Calaca within the next 270 days.
But the PSALM official said the Belgian group may consider closing the deal earlier. This means they would make the payment of the 40 percent earlier than the prescribed period.
CHI offered $786.53 million for Calaca power facility in Batangas besting two other bidders.
Formed in June 2007, CHI was established as special purpose company through which Suez-Tractebel S.A. would bid for and hold the Calaca power plant. CHI is wholly owned by Suez-Tractebel through its wholly-owned subsidiary Belgelectric Finance B.V. Suez-Tractebel is Belgium’s top utility holding company and one of the world’s top independent power producers, with operations in more than 100 countries on five continents.