AEV wooed as FMIC power partner
Manila Bulletin
may 15, 2006
Aboitiz Equity Ventures (AEV) is being wooed to get in as a new partner to First Metro Investment Corporation (FMIC) in power generation assets in Visayas that it recently acquired from Mirant Corporation.
"Aboitiz will likely come in as partner to First Metro," a highly-placed source has disclosed; noting that the deal is due to be sorted out within the first half of the year.
Atlanta-based Mirant confirmed the sale of 50 percent Mirant Global Corporation; which is the corporate vehicle for its power assets in the Visayas; covering the Panay power facility in Iloilo; Toledo plant in Cebu and the Nabas generation asset in the Visayas.
The sale now positions FMIC, which is the investment arm of the Metrobank group, as the owner of thesefacilities.
However, to inject some operational capability in the operation of these assets, it was noted that theinvestment firm is negotiating with the Aboitiz group to come in as its partner. The parties are not keen on disclosing yet any preliminary details of thenegotiations.
Meanwhile, in its disclosure at the Philippine Stock Exchange, FMIC noted that it "is not buying the shares of Mirant Philippines in MGC," instead, it averred that it merely served as arranger in the sale process.
It has been indicated that if Aboitiz would buy into the MGC shares, this would be a beneficial development, especially in its bid to augment capacity in areas served by its affiliate distribution firm, the Visayan Electric Company.
It would be noted that Mirant Toledo has been named among those eyeing to join the bidding for the tenders sought by AEV for additional 200-megawatt capacity that VECO would be needing on stream by 2010.
For the new power capacity being solicited, the Aboitiz-controlled utility firm noted that interested investors "can propose any technology, fuel mix or plant configuration" as long as this will meet the prescribed configurations.
The utility firm further emphasized that the plant shall have a gross capacity of 100-MW deliverable by January 1, 2010; and the other 100 MW shall be set on stream by January 1, 2011.
Aside from Mirant Global, the other offers were from Kepco-Salcon Power Corporation, Applied Research Technologies Philippines, Inc. and PacificManufacturing Resources.
VECO said it opted a facility constructed in Cebu so it can avoid any transmission bottleneck and as a way of ensuring that rates turn out more competitive.
It has been emphasized that the siting of the facility has bearing on "the long term reliability and supply of electric power to its customers and for making rates reasonable." The price reference is the grid rate of the National Power Corporation in thearea. (MMV)
VECO’s franchise area covers the Metro Cebu area and about six neighboring municipalities. It counts around 295,000 households as customers; in addition to commercial establishments and industries.
Forecasts indicated that the power supply of VECO will go up to 354 MW starting 2010; and such necessitates additional 200 MW tucked into its system.
The power facility being solicited set outs specification that it shall be capable of operating on a baseload mode and shall have an operating life of 25 years. (MMV)
may 15, 2006
Aboitiz Equity Ventures (AEV) is being wooed to get in as a new partner to First Metro Investment Corporation (FMIC) in power generation assets in Visayas that it recently acquired from Mirant Corporation.
"Aboitiz will likely come in as partner to First Metro," a highly-placed source has disclosed; noting that the deal is due to be sorted out within the first half of the year.
Atlanta-based Mirant confirmed the sale of 50 percent Mirant Global Corporation; which is the corporate vehicle for its power assets in the Visayas; covering the Panay power facility in Iloilo; Toledo plant in Cebu and the Nabas generation asset in the Visayas.
The sale now positions FMIC, which is the investment arm of the Metrobank group, as the owner of thesefacilities.
However, to inject some operational capability in the operation of these assets, it was noted that theinvestment firm is negotiating with the Aboitiz group to come in as its partner. The parties are not keen on disclosing yet any preliminary details of thenegotiations.
Meanwhile, in its disclosure at the Philippine Stock Exchange, FMIC noted that it "is not buying the shares of Mirant Philippines in MGC," instead, it averred that it merely served as arranger in the sale process.
It has been indicated that if Aboitiz would buy into the MGC shares, this would be a beneficial development, especially in its bid to augment capacity in areas served by its affiliate distribution firm, the Visayan Electric Company.
It would be noted that Mirant Toledo has been named among those eyeing to join the bidding for the tenders sought by AEV for additional 200-megawatt capacity that VECO would be needing on stream by 2010.
For the new power capacity being solicited, the Aboitiz-controlled utility firm noted that interested investors "can propose any technology, fuel mix or plant configuration" as long as this will meet the prescribed configurations.
The utility firm further emphasized that the plant shall have a gross capacity of 100-MW deliverable by January 1, 2010; and the other 100 MW shall be set on stream by January 1, 2011.
Aside from Mirant Global, the other offers were from Kepco-Salcon Power Corporation, Applied Research Technologies Philippines, Inc. and PacificManufacturing Resources.
VECO said it opted a facility constructed in Cebu so it can avoid any transmission bottleneck and as a way of ensuring that rates turn out more competitive.
It has been emphasized that the siting of the facility has bearing on "the long term reliability and supply of electric power to its customers and for making rates reasonable." The price reference is the grid rate of the National Power Corporation in thearea. (MMV)
VECO’s franchise area covers the Metro Cebu area and about six neighboring municipalities. It counts around 295,000 households as customers; in addition to commercial establishments and industries.
Forecasts indicated that the power supply of VECO will go up to 354 MW starting 2010; and such necessitates additional 200 MW tucked into its system.
The power facility being solicited set outs specification that it shall be capable of operating on a baseload mode and shall have an operating life of 25 years. (MMV)
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