MANILA ELECTRIC CO. (Meralco) is open to participating in the federal government bidding for the coal operating contract on Semirara Island, which has been held by Semirara Mining and Power Corp. (SMPC), its chairman said.
“Higher if Meralco or MGEN (Meralco PowerGen Corp.) take a have a look at it,” Meralco Chairman Manuel V. Pangilinan told reporters on Monday.
The federal government plans to open bidding for the contract this 12 months.
MGEN is the ability generation arm of Meralco and operates a various portfolio of power generation assets, including thermal and renewable energy technologies.
Mr. Pangilinan said the corporate is able to operating a mine-mouth project, an influence station situated adjoining to a coal mine that enables the direct transport of fuel from the mine to the plant through a conveyor belt.
He said this setup could help localize the fuel supply chain and reduce freight costs.
SMPC has held the coal operating contract for nearly 50 years, allowing it to explore, develop, and mine coal on Semirara Island.
The corporate obtained the contract in 1977, granting it mining rights for 35 years, which were later prolonged by 15 years.
With the contract set to run out in 2027, the corporate has sought approval from the Department of Energy (DoE) to renew the contract for a further 13 years.
Energy Secretary Sharon S. Garin said the contract ought to be put out to bidding quite than renewed, following a legal opinion from the Department of Justice.
SMPC said on Monday that it intends to take part in the bidding if the DoE formally initiates an auction, citing its long operational experience on Semirara Island.
“SMPC’s many years of experience in managing complex engineering projects, coupled with its established operations, technical expertise, and extensive equipment fleet developed through its long-standing operations in Semirara Island, provide a powerful competitive advantage, which now we have communicated to the DoE,” it said.
SMPC, the ability generation and coal-mining unit of the Consunji group, is the Philippines’ largest coal producer and the one power company within the country that owns and mines its own fuel source.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera