Alsons unit to put up 3 hydro power plants in Negros Occidental for P3.8 B

Alcantara-owned Alsons Consolidated Resources Inc. (ACR) said yesterday its unit Alto Power Management Corp. is planning to build three hydro power plants worth an estimated P3.8 billion in Negros Occidental.

In a disclosure to the Philippine Stock Exchange, ACR said the proposed facilities, which will take four years to construct, will have an aggregate capacity of 40 megawatts. These will be located along the upper Bago River.

Alto Power presented yesterday a feasibility study for the development of the project before the local government and provincial council of Negros Occidental headed by Gov. Isidro Zayco.

The study targets a tarriff rate of no more than P4 per kilowatt-hour (Kwh) before any adjustments for inflation and escalation. In comparison, Central Negros Electric Cooperative currently pays almost P5/kwh including transmission charges for power sourced from the National Power Corp.

Upon approval of the project, Alto will proceed with the preparation of a full feasibility study that will include detailed engineering, economic and environmental assessments to confirm the preliminary conclusions and form the basis for subsequent project implementation.

Aside from energy and power, ACR is engaged in property development and product distribution. For the energy and power business, ACR has investments in two holding firms, namely Conal Holdings Corp. and Alsons Power Holdings Inc.

ACR is teaming up with Energy Generating Public Co. of Thailand and Toyota Tsusho, the trading arm of the Toyota Motor Group, to jumpstart its diversification into the bioethanol business. The project, estimated to cost around $2.4 million, will involve the development of a 100,000-liter per day plant, slated for commercial operations by early 2011.

ACR is hoping to capitalize on the anticipated growth in domestic demand for fuel with the mandatory five percent blend of bioethanol by May 2009.

According to a study conducted by the Department of Energy, domestic bioethanol demand is forecast to reach 309 million liters per annum by 2009 and will increase further to 664 million liters by 2011 and 713 million liters by 2013. — Zinnia dela Peña