MVP eyes Semirara coal mine contract
Billionaire Manuel V. Pangilinan, who heads power giant Manila Electric Co. (Meralco), has expressed interest in taking over the coal operating contract on Semirara Island that is long-held by the Consunji Group.
When asked if there is a possibility for his group to join the bidding for the Semirara coal mine contract with the government, Pangilinan said: “Certainly it’s on [our] radar.”
“Better if Meralco or MGEN take a look at it,” the Meralco chair told reporters following an event on Monday.
The tycoon said Meralco could operate a mine-mouth project, a power generation setup where a facility is developed near or beside a coal mine, allowing the direct transport of coal to the plant.
“You secure your supply chain, right? Locally. So that must be the benefit. So you save on freight at least,” he added.
MGEN, or Meralco PowerGen Corp., is the group’s power generation arm with a net sellable capacity of 5,079.2 megawatts from traditional and renewable sources, as of January.
In September last year, Pangilinan showed confidence in MGEN becoming a leader in its field, with solar, thermal and natural gas assets under its portfolio. The next five years would be MGEN’s “golden years,” the executive said at the time.
No for Aboitiz
Meanwhile, Carlos Aboitiz, chief corporate services officer at Aboitiz Power Corp., ruled out joining the auction.
“That’s news that’s not associated with our company. And frankly speaking, it’s sort of outside of the area of business for our company,” he told reporters in a separate interview.
Energy Secretary Sharon Garin said last week that the government would conduct a bidding this year for the Semirara coal contract currently with Semirara Mining and Power Corp. (SMPC).
This, as the Department of Justice turned down SMPC’s request to extend its contract for 13 more years.
This development led to its share price plunging by 21 percent on Monday, as analysts noted a significant impact on SMPC’s earnings if the group fails to regain control of the contract.
SMPC, for its part, said it would participate in the bidding.
“We believe our decades of operating experience, technical expertise and established infrastructure in Semirara Island position us strongly,” it said.
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