AC Energy Holdings Inc. said subsidiary GN Power Kauswagan Ltd. Co. is on track to complete a 552-megawatt coal-fired power plant in Kauswagan, Lanao del Norte next year.
AC Energy president and chief executive John Eric Francia said the project reflected the company’s commitment to help address the increasing power demand in Mindanao.
“AC Energy believes in the strong economic potential of Mindanao. GNPK offers low cost and dependable power to the region, which will help unlock its potential,” Francia said.
GNPK is a subsidiary of AC Energy, the power arm of the Ayala Group in partnership with Power Partners and the Philippine Investment Alliance for Infrastructure Fund.
The 552-MW plant will operate as a baseload plant to support the region’s power demand and contribute to the economic development of Mindanao.
GNPK is expected to deliver power to the Mindanao grid next year and signed a memorandum of agreement with Silangan Mindanao Mining Co. Inc. for a 55-MW power purchase service agreement to provide the power requirements of Silangan copper and gold mining project in Surigao del Nort for the next 12 years.
The agreement will commence on SMMCI’s projected commercial operations by 2020.
The memorandum was executed with GNPK as it satisfied the requirements of the definitive feasibility study of the mining project. Other key considerations were supply availability, sustainability and cost.
“Power sourcing is very important for the Silangan project as it forms an integral part of our business due to the lack of available sustainable power supply and capacity from the local distribution utility in Surigao del Norte within the defined commercial operations period,” said SMMCI legal and landbanking manager Axel Tumulak.
GNPK officials said the development of the Silangan project would result in a supply chain to improve the lives of the people in their host communities and develop the country not just for their shareholders but also for their local stakeholders.
SMMCI is a wholly-owned subsidiary of mining giant Philex Mining Corp.
