US company to invest US$1 billion on new Philippine power plants
The foreign operator of a Philippine coal-fired power plant intends to immediately expand its operations.
GN Power Ltd. plans to invest some US$1 billion to develop, construct, install and operate two additional 300 megawatt (MW) generators in addition to the two original two 300 MW generators that use pulverized coal combustion technology. Construction of the two new generators is to begin in 2013.
Located in the town of Mariveles, Bataan in northern Philippines, GN’s Mariveles Coal Plant is expected to have the lowest marginal operating cost of any coal-fired plant in the Luzon grid when completed by the end of this year. It will also benefit the local community by providing employment and cutting power costs.
GN has said it would grant a 10% power rate discount to consumers in Bataan province. The plant is also expected to generate savings of at least US$7 million annually for the province, which also stands to earn about the same amount in taxes.
GN CEO Dan Chalmers told Philippine President Benigno Aquino III recently that his company will continue to explore power projects in other parts of the Philippines such as Mindanao.
Aquino noted that the cost of power needs to be brought down to keep the Philippines competitive, especially in manufacturing. The Philippines’ currently has Asia’s most expensive electricity.