Alsons plans P1.5 billion commercial papers to fund hydropower projects

MANILA, Philippines — Alsons Consolidated Resources Inc. (ACR), the investment holding firm of the Alcantara Group, is planning to issue commercial papers worth P1.5 billion to fund its hydropower projects in the pipeline.

In a disclosure yesterday, ACR said it intends to use the proceeds from the commercial papers to partially fund the development of the company’s 15.1-megawatt (MW) run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani, and other hydropower projects.

The Siguil project, which has a project cost of P4.25 billion, marks ACR’s entry into the renewable energy sphere.

It is expected to begin commercial operations in 2021, providing power to Sarangani Province, Gen. Santos City and key municipalities of South Cotabato.

Meanwhile, ACR also plans to pursue additional run-of-river hydroelectric power projects in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces and Surigao del Sur.

These projects have a total hydro capacity potential totaling more than 145 MW.

Earlier this year, the proposed issuance received a PRS A plus issuer credit rating from the Philippine Rating Services Corp. (PhilRatings).

Such rating means the company has an above average capacity to meet its financial commitments relative to other Philippine corporates.

Among the factors cited by PhilRatings as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and ACR’s “ability to establish joint ventures with strong partners for particular projects.”

Aside from the hydro projects, the company is also in the final stages of constructing Section 2 of the 210-MW Sarangani Energy Corp. (SEC) baseload coal-fired power plant in Maasim, Sarangani. SEC Section 2 is expected to begin commercial operations within the first quarter of 2019.

Next year, ACR will also begin constructing the 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Zamboanga City which is targeting to start commercial operations in 2022.