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Friday, March 29, 2024

DMCI in talks with Meralco, Marubeni on coal power plant

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DMCI Holdings Inc., the listed holding company of the Consunji family, is in talks with Manila Electric Co. and Marubeni Corp. of Japan to build a 700-megawatt coal power plant in Batangas province.

DMCI chairman and president Isidro Consunji said his company was in preliminary discussions with the two groups and hoped to finalize an agreement within the year.

Initial negotiations point to DMCI and Meraclo owning 40 percent each in a consortium that will build and operate the planned coal power plant, with Marubeni holding the balance.

The proposed power plant project is the second phase of the planned expansion of the Calaca coal-fired plant facility. 

The current Calaca facility consists of two 300-MW generating units designed to utilize local coal from the Semirara mines in Antique

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DMCI-owned Semirara Mining and Power Corp. in 2014 approved the planned investment in two new units, each with a 350-MW capacity.

Meanwhile, DMCI said it earmarked a record P40 billion in capital spending this year, more than doubling the commitment of P19.3 billion in 2015. 

DMCI said the significant increase in the group’s capital expenditure was aimed support the growth in its real estate and power generation businesses. 

“This is our biggest annual capex program to date. There is still considerable room for growth in the property market and power industry so we are focusing our resources on these areas,” said Consunji. 

The group’s real estate unit DMCI Homes will account for the bulk of the capital commitment at P32.5 billion. 

DMCI Homesplan to spend P27.5 billion for development of new projects to be launched in 2016 and P5 billion to fund land acquisitions.  

Among the big projects of DMCI Homes this year is a high-end condominium in Asia World, Parañaque, which will be the company’s first luxury residential development. It will also begin developing its first mixed-use building in Makati.

Plans are also underway for the mid-segment developer to expand outside Metro Manila and enter the low-cost housing market. 

The conglomerate is spending around P7.2 billion on energy projects under Semirara and DMCI Power Corp. and P700 million for the group’s mining and construction unit

DMCI said it was participating in a number of infrastructure projects up for auction this year, either as a bidder or contractor. 

DMCI Mining, meanwhile, plans to increase its nickel output to help weather the slump in commodity prices.

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