MGen putting up P1.7-B Quezon transmission line
Updated June 19, 2017 – 12:00am
http://www.philstar.com/
MANILA, Philippines – Meralco PowerGen Corp. (MGen), the power generating unit of power distribution giant Manila Electric Co. (Meralco), will put up a P1.7-billion transmission project to connect its 2×600-megawatt (MW) coal-fired power plant in Atimonan, Quezon to the power grid.
The connecting facility is estimated to cost P1.71 billion covering the construction of the switchyard and transmission lines, as well as right-of-way acquisitions.
Funding for the project will be sourced through AE’s equity and loan.
“..(T)he construction of the dedicated point-to-point transmission facility is a pre-requisite for the testing and commissioning, and ultimately, the commercial operations of A1E coal-fired power plant,” the company said.
The power firm proposed to build a 23-kilometer dedicated point-to-point limited facilities to the New Pagbilao substation being constructed by the National Grid Corp. of the Philippines (NGCP).
The new Pagbilao substation — estimated to cost P3.58 billion — will accommodate additional 2,720 MW generation capacities from new power plants being built in Quezon province, including that of A1E.
A1E said the construction of its transmission project will be contracted with an NGCP-accredited transmission line contractor under a full-scope engineering, procurement, and construction contract.
For the power plant, MGen is currently in talks for a P100-billion financing deal with several banks to bankroll the construction of the 2×600-MW coal plant.
Since the project is a massive undertaking, MGen is eyeing to close a partnership deal to co-develop the power plant within the year, with the Meralco firm keeping a controlling stake in A1E.
MGen is currently evaluating bids from three potential engineering, procurement and construction contractors.
Site preparation is targeted in mid-2017 while project completion is eyed in late 2021. It recently completed the resettlement of affected households to allow main project construction to proceed on schedule.
Full capacity of the Atimonan project will be sold to Meralco under a 20-year power supply agreement signed earlier this year, subject to ERC approval.
