Conglomerate DMCI Holdings Inc. sealed a 50-50 joint venture with Manila Electric Co. to build a 700-megawatt coal-fired power project in Calaca, Batangas.
DMCI president Isidro A. Consunji said in an interview at the sidelines of the annual stockholders’ meeting the company was just waiting for the final approval of the Energy Regulatory Commission before proceeding with the project.
Consunji said while both parties agreed to a 50/50 joint venture, a third investor might also come in and acquire up to a 20-percent stake. This means that the ownership of DMCI and Meralco will be reduced to 40 percent each.
The proposed power plant project is the second phase of the planned expansion of Calaca facility.
The current Calaca facility consists of two 300-MW generating units and is designed to utilize local coal from Semirara mines in Antique.
Consunji said DMCI was re-shaping its growth strategy to deliver more value to shareholders.
He said among the strategies being planned by the group were venturing into developing houses for low-income and lower middle-class families, pursuing renewable energy projects and developing new businesses to complement and boost existing capacities.
DMCI currently has investments in construction, real estate, mining, power generation and water utility.
Consunji said the group’s real estate unit considered the possibility of developing residential projects below the current price offering of P3.5 million.
The group through DMCI Homes is currently constructing 15 projects in Metro Manila, Davao and Baguio. The projects have a total of 17,481 residential units with sales value of P62 billion.
Consunji said for the renewable energy sector, the group planned to build an energy portfolio with an optimum blend of conventional and sustainable energy.
DMCI expects net income to be flat this year from last year’s level as DMCI Homes and Maynilad Water Co Inc. would likely post lower profits.