Meralco to acquire majority in a coal-fired power plant in Subic

Manila Electric Co., the country's largest power distributor, is set to become the majority shareholder of Redondo Peninsula Enery (RP Energy), a joint venture between Aboitiz Power Corp. and Taiwan Cogeneration Corp. Philippine Branch. In a statement to the Philippine Stock Exchange on Tuesday, Meralco said its board of directors approved the acquisition of shares in RP Energy by its wholly-owned subsidiary Meralco PowerGen Corp. (MPG). RP Energy has the development rights and assets to 600 megawatt coal-fired power plant in the Subic Bay Freeport Zone in Zambales. "It is envisaged that the Meralco Group will have a majority ownership interest in RP Energy while Aboitiz Power and TCC will be diluted equally and a have a combined holding of less than 50 percent," Meralco said. Meralco had earlier revealed plans to foray into the power generation business as "part of its over-all strategy to assist in ensuring efficient, adequate and reliable electricity at cost-competitive rates." The investment in RP Energy will also help augment generation capacity in the Luzon grid. -- CMA/OMG, GMA News