Philippines: DPC investing $18.3m in new power plant

Philippines: DPC investing $18.3m in new power plant

DMCI Power Corp (DPC), the energy generation arm of diversified engineering
conglomerate DMCI Holdings Inc, is investing up to $18.3 million (P900
million) in the building of a new bunker-fired power plant in the
Philippines.

The 3×6.3-megawatt plant will be constructed at Irawan village in Puerto
Princesa City, in the province of Palawan upon the request of the Palawan
Electric Cooperative (PALECO).

The power facility is targeted to commercially operate by last quarter of
2017.

PALECO last August requested DPC via a board resolution to replace its
existing hi-speed diesel generator sets to a more reliable bunker-fired
plant to assist in alleviating the power interruptions in the main grid of
Palawan.

"We believe that this is a good investment because of the benefits it will
bring to the people of Palawan," said DPC president Nestor Dadivas.

He noted that with a more stable power supply, PALECO can support more
businesses and economic activity in the area.

Irawan is popular for its eco-adventure tour, which takes visitors to the
jungles of Palawan.

An off-grid energy producer in the Philippines, DPC recommended the
installation of the generating sets in Puerto Princesa City, which serves as
the load center of PALECO.

The company claims constructing the new plant on the Irawan area will lessen
transmission line constraints in the delivery of power.

"We are committed to addressing the energy needs of PALECO, and will do
everything we can to provide them with sufficient, reliable electricity,"
Dadivas added.

DMCI more than doubled its net income to P732 million from P361 million last
year. The 103 per cent growth was primarily related to the full recognition
of cost overruns for a power plant in 2015.

DPC booked a 12 per cent profit increase to P342 million from P305 million,
as a result of higher sales to electricity cooperatives in Calapan, Masbate,
and Palawan.

DMCI's share prices increased 0.99 per cent or P0.120 to close at P12.22 on
Monday.

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Link to Original Article:
http://www.dealstreetasia.com/stories/philippines-dpc-investing-18-3m-in-new
-power-plant-58237/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com