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Alsons, GBP enter partnership in power holding company

Alsons Consolidated Resources, Inc. (ACR) has signed an agreement with Global Business Power Corporation (GBP), the leading power producer in the Visayas and an associate of Metro Pacific Investments Corporation (MPIC).

The agreement gives GBP a 50% stake in Alsons Thermal Energy Corporation (ATEC), the holding company for ACR’s baseload coal-fired power plant assets.

ING Bank N.V. acted as ACR’s sole financial adviser for the transaction while the law firm of Castillo Laman Tan Pantaleon & San Jose served as ACR’s legal adviser. Macquarie Capital acted as sole financial adviser, and Puyat Jacinto & Santos Law acted as the legal adviser to GBP.

ATEC owns a 75% stake in the 210 Mega Watt (MW) Sarangani Energy Corporation (SEC) baseload coal-fired plant in Maasim, Sarangani Province. ACR’s long-time Japanese partner Toyota Tsusho Corporation (TTC) will still hold a 25% equity in SEC. ATEC will also assume ACR’s stake in San Ramon Power, Inc. (SRPI) which is developing a 105 MW baseload coal-fired plant in Zamboanga City.

The SEC plant’s first 105 MW section began operating in April 2016. SEC’s second 105 MW section is currently undergoing construction and is slated to begin operating in 2019.

When SEC reaches its full 210 MW capacity in the first half of 2019, it will be servicing over six million people in key population centers of Mindanao such as General Santos, Cagayan de Oro, Iligan, and Butuan.

The SRPI plant which will provide baseload power to Zamboanga City and other nearby areas is scheduled to commence commercial operations in 2021. ACR likewise operates three diesel plants in different parts of Mindanao to provide peaking and backup power. It is also entering the renewable sphere with its first 15 MW run-of-river hydro plant in Sarangani scheduled to begin construction this year.

ACR Chairman and President Tomas I. Alcantara said, “We look forward to a fruitful partnership that combines GBP’s technical competencies and strengths in the Visayas with ACR’s long years of experience in Mindanao as the island’s first independent power producer. We believe that this partnership will greatly benefit power consumers particularly in light of the planned interconnection of the Mindanao and Visayas grids which we strongly support. We are sure that this alliance with GBP and MPIC will make us a more formidable enterprise, more competitive and more resilient in meeting the challenges of the present and those that are yet to come.”

MPIC and GBP Chairman Manuel V. Pangilinan stated, “The new partnership with Alsons presents a significant milestone for us, thru GBP, to enter the fast-growing and dynamic Mindanao market given Alsons’ proven, long-standing and successful track record in owning and operating power plants in Mindanao. This strategic acquisition is in line with MPIC’s commitment to further bolster our infrastructure investments in all parts of the Philippines.”

For his part, GBP President Jaime Azurin said, “GBP was established out of the need for adequate, reliable and cost-efficient power supply in the Visayas. Now that the region’s baseload power requirements have been secured, we are delighted to have another opportunity to be of service to emerging markets like Mindanao and help drive the nation forward through our new partners.”

Alsons PR