Alsons Consolidated Resources Inc., the publicly-listed company of the Alcantara Group, may invest up to P21 billion until 2022 on two new power projects with a combined power output of 120 megawatts.
Alsons is putting up the P4-billion, 15-MW Siguil hydro project in Maasim, Sarangani province and 105-MW coal-fired power plant of San Ramon Power Inc. in Zamboanga City costing P17 billion,
“This year, were implementing Siguil, that’s going to be the biggest capex,” Alsons executive vice president Tirso Santillan said Monday.
He said Alsons was spending about P1 billion in equity for the Siguil project and raising the balance through borrowings.
“Our first renewable venture—the Siguil Hydro project—is on-track and we expect to go full blast with civil works later this year as we target the start of commercial operations in 2022,” he said.
Santillan said the bulk of the spending for the San Ramon coal project would come next year.
“We’ve spent about P400 million already on San Ramon. We will spend more in December when we give our NTP (notice to proceed). Then we’re planning to borrow money by March 2020,” he said.
Santillan said the San Ramon project was expected to finally start construction in the fourth quarter of this year after the selection of the engineering, procurement and construction contractor.
He said the San Ramon project “has nearly all of their capacity fully contracted,” adding the company had the foresight to enter into power sales agreements early on when Mindanao was still in the midst of a power shortage.
Santillan earlier said he expected better financial prospects for Alsons this year after posting a net income of P563 million in 2018.
He said the commissioning of the 105-megawatt portion of Sarangani Energy Corp. power plant this year in Maasim, Sarangani would provide additional revenues to the company.
The second unit will start operating later this year and benefit some three million consumers in South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Misamis Oriental, and North Cotabato.
“Actually, good prospects for this year, mainly because of, we have completion of a new project, the SEC 2 which will add 105 MW to our capacity... There will be some additional revenues and income arising from that,” Santillan said.
Alsons chief financial officer Robert Yenko said revenues and income would be better this year.
“... because of cost cutting measures and lower debt, bottom line will also be better. This year will be better we think than last year. Revenues will be at least 20 percent better this year than last year,” Yenko said.
“Another part to that is additional revenues from ancillary services from one of our diesel plants. That will also contribute to the better prospects for the year,” he added.