Hanjin firms up plans for first power plant project in Phl

MANILA, Philippines - Subic-based shipbuilder Hanjin Heavy Industries and Construction Co. Ltd. Philippines Inc. (HHIC-Phil) has formally informed the Department of Energy (DOE) of its decision to pursue its first power plant project in the country.

The power generation project will cater to the increasing needs of the company and also provide additional electricity to the grid, a DOE official said.

“HHIC-Phil wants to build their own power plant,” said Energy Undersecretary Josefina Patricia Asirit.

Asirit said the Korean ship builder is already looking for a construction site.

Late last year, the company announced its plan to put up a 200-megawatt (MW) power plant worth between $200 million to $400 million within the Subic Bay Freeport Zone to supply its electricity requirements.

“It will not only (be for their electricity needs). Certainly they will sell to the grid,” Asirit said.

Under the Power Development Plan 2010-2030, the Luzon grid would need some 11,900 MW of additional power, of which only 600 MW is committed or has secured funding requirements and 3,448 MW is indicative or is still seeking financing.

Asirit said the investment decision came at the heels of HHIC-Phil’s planned construction of a third drydock worth $300 million in its shipyard facility.

The shipyard expansion will allow HHIC-Phil to accept more ship repair jobs.

To date, HHIC-Phil occupies a 600-hectare lot in the Subic Bay Freeport Zone in Olongapo, Zambales. The company is looking at an additional 100-hectare lot for the drydock expansion.

“HHIC-Phil is in Subic but the power plant does not necessarily have to be there,” Asirit said.

“Although certainly it would be better if it is located in the area,” she said.

Since its first vessel delivery in 2008, Hanjin had posted P125 billion in annual export sales as of end-2011, making it the consistent top exporter in this premier freeport.

It has also made the Philippines a shipbuilding nation in the process. The Philippines now ranks as the world’s fourth largest shipbuilder, data from the Maritime Industry Authority showed.

To date, HHIC-Phil employs roughly 20,000 local workers. Once targets for ship orders are reached this year, Hanjin plans to increase its workforce by another 10,000.