Philippine, Korean groups negotiate EPC contract for Subic coal-fired project

Philippines' Meralco PowerGen is negotiating with South Korea’s Hyundai Group for the engineering, procurement and construction contract of its $1.2-billion Subic coal-fired power facility.

“We had three bidders… we are negotiating now with the lead bidder,” said Meralco executive vice president Aaron Domingo.

The group is a consortium of three Hyundai companies, namely Hyundai Engineering & Construction Co. Ltd.; Hyundai Corporation and Hyundai Engineering Co.

Redondo Peninsula Energy Inc. will be the corporate vehicle for the 600-megawatt Subic coal-fired project. Meralco PowerGen will be the major stakeholder, in partnership with Aboitiz Group’s Therma Power Inc. and Taiwan Cogeneration Corporation.

While project developers are already certain on financial closure as well as on the power supply agreement for the project, the Meralco executive has emphasized that their focus now is resolving the other major concerns.

“There are only three main issues now, and those are not within our control and we would like to get the cooperation of everyone,” he said.

These concerns will cover the ECC, interconnection issues with the National Grid Corporation of the Philippines and finalizing the documentation process for the land lease development agreement with the Subic Bay Metropolitan Authority.

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