Alsons Consolidated Resources Inc. is raising P1.5 billion from the sale of commercial paper to partially fund the development of the company’s P4.25-billion run-of-river hydro at the Siguil River basin in Maasim, Sarangani province, and other hydro power projects.
Alsons, the publicly-listed company of the Alcantara Group, said the planned 15.1-megawatt Siguil hydro power plant was expected to begin commercial operations in 2021 and provide electricity to Sarangani, General Santos City and key municipalities of South Cotabato province.
“The hydro project marks Alsons entry into the renewable energy sphere,” the company said.
Alsons, Mindanao’s first independent power producer, also plans to pursue additional run-of-river hydroelectric power projects with a combined output of 145 MW in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces and Surigao del Sur.
The debt notes earlier this year received a PRS A plus (corp.) issuer credit rating from Philippine Rating Services Corporation (PhilRatings).
The rating means the company has an above average capacity to meet financial commitments relative to other companies.
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.”
The company is in the final stages of constructing the second phase of the 210-megawatt coal-fired power plant of Sarangani Energy Corp. in Maasim, Sarangani.
The second phase is expected to begin commercial operations within the first quarter of 2019.
Alsons will also begin building the 105-MW coal-fired power plant in Zamboanga City of San Ramon Power Inc., which is to start commercial operations in 2022.
Alsons operates four power plants in Mindanao generating a combined capacity of 363 MW and serving over eight million people in 13 cities and eight provinces.