Monday, November 12, 2007 Global power, Formosa to put up power plant in Cebu
METROBANK group subsidiary Global Business Power Corp. is sealing a joint venture agreement with Formosa Heavy Industries (FHI) to construct a US$500 million worth of power plant using clean coal technology.
The joint venture agreement completes the plans of Global Power to expand its power plants in Cebu and Panay in answer to the urgent need for more electricity in the Cebu-Negros-Panay grid.
Likewise, Global Power will be executing an Engineering, Procurement and Construction (EPC) contract to build the initial 246-megawatt (MW) power plant at its Toledo Power Station in Cebu.
The construction of the Toledo expansion plant will begin in January 2008 for completion in early 2010.
The expanded capacity will be sold to its existing customers like Veco, Cebeco and other cooperatives in the grid.
Also, a memorandum of understanding will be forged by the two parties to expand Global Power's Panay power plant with FHI both as an investor and EPC contractor.
The new plant in Iloilo City will have a capacity of 164 MW.
Global Power is the largest independent power producer in the Visayas with a total plant capacity of over 230 MW using both coal and diesel technologies.
Global Power owns and operates the Toledo Power Station in Cebu which supplies Veco and Cebeco and the Panay Power Station which powers Iloilo City through Peco.
Aboitiz Power and Vivant Corporation will be the local partners of Global Power in these projects.
Aboitiz Power is one of the leaders in the power industry in the Philippines both in generation and distribution, while Vivant Corporation has been in the power business for several decades particularly in the Cebu Island.
On the other hand, Formosa Heavy Industries owns and operates over 14,000 MW of coal fired plants in Asia, mainly Taiwan, China and Vietnam.
The Formosa Group of Companies, a global conglomerate and one of the largest plastics and petrochemical companies in the world owns the Formosa Heavy Industries. (MSN/Sunnex)
