The joint venture of Manila Electric Co., Marubeni Corp., The Kansai Electric Power Co. Inc., and Chubu Electric Power Co. Inc. is on track to complete a substation that will deliver temporary power in time for the 30th Southeast Asian Games late this year.
“Our commitment is on schedule to make available temporary power for SEA Games… Our obligation is to complete the substation which is scheduled for end of June,” Meralco senior vice president Rogelio Singson said Monday.
Singson said the company had an agreement with Tarlac Electric Cooperative and Bases Conversion Development authority to sell power.
“Our JVC is for distribution only and we can’t contract yet because the franchise has not been granted to the JVC [joint venture company]. It was only passed by Congress last week,” Singson said.
The joint venture is investing P6.3 billion for 25 years to operate and maintain the electric power distribution system in New Clark City.
The Meralco-Marubeni consortium and BCDA in April 3 signed the joint venture agreement for the financing, design and engineering, establishment, construction, development and operation and maintenance of the electric power distribution system in New Clark City project.
“The transaction is an opportunity for Meralco to participate in the development of New Clark City and generate additional revenues in the operation of its electric distribution system there,” Meralco said earlier.
Meralco will 60 percent of the company that the Meralco-Marubeni consortium will form. Marubeni will hold 20 percent, while Kansai Electric and Chubu will own a combined 10 percent. BCDA will take anotherv10 percent.
BCDA has already issued the notice of award to Meralco as the power distributor of New Clark City after offering the lowest power supply rate. Meralco and Marubeni submitted the lowest power distribution rate of P0.6188 per kilowatt hour for New Clark City.