Sarangani Energy raises capital stock, sets start of 200-MW coal plant project

GENERAL SANTOS CITY - The Alcantara-controlled Sarangani Energy Corporation (SEC) has increased its capital stock to P4.5 billion as it moved ahead with the construction of its US$ 450 million coal-fired power plant in nearby Maasim town in Sarangani province.
The increase in capital stock will mainly cover for the equity in the development, construction and operation of the 200-megawatt (MW) coal power plant in the coastal village of Kamanga in Maasim that was targeted to go on stream by 2015, the company said in a statement emailed Thursday to the Philippines News Agency.
It said SEC’s capital stock, which was raised from an initial declared capitalization of P5 million, will be divided into 4.25 billion shares with a par value of P1 per share.
SEC is a wholly-owned subsidiary of Alsons Consolidated Resources Inc. (ACR) – the publicly-listed holding company of the Alcantara Group.
The coal plant project is a joint venture between the Alsons and Thailand's Electricity Generating Public Co. Ltd. or EGCO.
With the increase in its capital stock, SEC said it gave the go-signal to Korean contractor Daelim Industrial Co. Ltd. to proceed with the engineering and construction of the Sarangani coal plant project’s first phase.
Daelim, which is considered as one of the biggest construction and engineering firms in South Korea and with projects moving in over 24 countries, was earlier contracted by SEC to handle the project’s engineering, procurement and construction aspects.
Daelim executives and engineers recently flew in from its Seoul offices to conduct an ocular inspection of the site, signaling the start of the detailed design and engineering works that will run through the fourth quarter of the year.
Oscar Benedict Contreras III, Alsons Power Business Unit manager for communications and stakeholder relations, said the actual construction of the coal power plant is targeted to commence by the third quarter of the year.
He said the completion of the project’s detailed design and engineering will lead to the actual erection and installation works of the power plant.
The power plant project is a two-phase complex of two 100 megawatt plants each. The second phase will commence within 18 months of the start of the first phase.
Maasim Mayor Art Lawa, who earlier met with the Daelim and SEC executives, expressed full support to the coal plant project, which is so far the biggest investment venture in Region 12 or the Soccsksargen Region.
The mayor expressed optimism that the SEC power plant would put an end to the worsening power supply shortage in Southern and Central Mindanao.
SEC had forged a power supply deal with the South Cotabato Electric Cooperative II (Socoteco II), which serves this city, the entire Sarangani province and parts of South Cotabato. The power sales agreement covers the provision of 70 MW to the electric cooperative. It is still up for review by the Energy Regulatory Commission. (PNA)