MANILA, Philippines - Prime Asset Ventures Inc. (PAVI), the holding company of the group of businessman Manuel Villar, is firming up plans to put up new power plants in off-grid areas in Luzon and Visayas within the year.
PAVI consultant Froilan Tampinco, in an interview on the sidelines of the three-day Powertrends 2013 Conference, said the power unit of the group is eyeing to initially construct a 6.5 MW diesel-fired power facility.
Tampinco did not identify the name of the company that will handle the power projects but said it would be the power arm of the group.
In 2011, the Villar group incorporated Kratos RES Inc. to primarily serve as a Retail Electricity Supplier (RES) unit. Initially, Kratos RES plans to supply eligible commercial, and industrial and residential end-users with its affiliate companies and business partners.
In the near future, Kratos RES is seen to be involved in power generation for supply security.
“PAVI is actually looking at all opportunities in the off-island, off-grid areas. We are practically new entrant so we are looking at all possible areas of investments in the power industry but we would like to start in the off-grid areas,†he said.
Initially, he said the group would tie up with an existing power company which would operate and maintain the power plant.
“We will be putting in equity and will be the owner of the plant but the O & M will be handled by our joint venture partner,†he said.
He said they are also looking at a power project in Palawan.
Tampinco, however, said they have still to firm up supply agreement with off-takers.
“We will supply electric cooperatives in these islands. But we have yet to finalize the agreements,†he said.