Philippine cement firm to get power from Masinloc coal-fired plant

Cement firm Lafarge Republic Inc. announced its decision to ink a power supply deal with Masinloc Power

Partners Co. Ltd. the operating subsidiary of American firm AES Corporation.

“Masinloc will supply electricity for a period of 5 years commencing on December 26, 2012 under agreed terms

and conditions,” the company stated.

The price and volume of the power supply pact were not provided, but like in all other electricity supply

agreements, the deal will also have to go through regulatory approvals prior to enforcement.

Masinloc Power Partners has already entered into several power supply contracts for the output of its

600-megawatt Masinloc coal-fired plant in Zambales. One of its major off-taker is Meralco for a contract thatwill be enforced over seven years.

Given opportunities for expansion, AES has also been actively navigating growth areas not only in Luzon but also in “tight supply areas” such as Mindanao grid.

For its Masinloc plant, AES has reportedly secured its environmental compliance certificate, but a final decision has yet to be laid down by its principals on the project’s implementation.

The plan would be to expand the Masinloc facility’s capacity by additional 600 megawatts and this may commandan investment of $800 million to $1.0 billion.

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