Meralco, First Pacific joint venture buys into 800MW Singapore power project

Manila Electric Company announced Monday that, through its subsidiary Meralco PowerGen Corporation, it has entered into a joint venture with First Pacific Company Limited of Hong Kong in order to acquire a 70 percent interest in a 800 megawatt Singapore power project. The joint venture, known as FPM Power Holdings Limited, has entered into a share purchase agreement with GMR Infrastructure (Singapore) Pte. Limited and GMR Infrastructure Limited for the acquisition of the majority shares of GMR Energy (Singapore) Pte. Ltd. Under the terms of the agreement, FPM Power agreed to pay $488 million plus certain adjustments for time value of money after March 31 to GMR Infrastructure for the latter’s 70% interest in GMR Energy. The remaining 30 percent ownership in GMR Energy is owned by Petronas of Malaysia. GMR Energy is in the advanced stage of constructing a 800 MW (2x400 MW) liquefied natural gas combined cycle combustion turbine power plant located in Jurong Island, Singapore. The plant is expected to commence commercial operations in December 2013. “Meralco PowerGen Corporation’s participation in the joint venture is an expression of MERALCO’s long-term vision to be a regional player in the power industry,” said Meralco chairman Manuel V. Pangilinan in a statement. “In addition, the joint venture is expected to provide LNG combined cycle power plant technology transfer to our country.” “This investment in a project under construction with an expected commercial operations date of December 2013 complements Meralco’s existing greenfield project developments in the Philippines,” added Oscar Reyes, Meralco president and chief executive officer. — DVM, GMA News