MGEN considers bid for Mindanao coal plant ahead of privatisation
The 232-megawatt facility in Misamis Oriental is due to pass into PSALM ownership when its current contract ends in November 2031.
Meralco PowerGen Corp. (MGEN) may bid for the 232-megawatt STEAG Mindanao Coal plant, with president and CEO Emmanuel Rubio saying the company would study a potential purchase as the Philippine government prepares to privatise it.
Rubio pointed to unmet electricity demand in Mindanao as a reason for considering the asset. He said the region’s power market offered scope for growth and could attract competing interest from other companies.
Preparations include a search by state-run Power Sector Assets and Liabilities Management Corp. (PSALM) for consultants to carry out an external financial valuation. The plant occupies a 55-hectare site in the PHIVIDEC Industrial Estate in Misamis Oriental.
SPI Power Inc., previously known as STEAG State Power, operates the facility under a power purchase agreement. Rubio was president and CEO of Aboitiz Power Corp. when that company acquired a controlling interest in the operator.
PSALM currently buys the electricity generated by the plant through a cooperation arrangement lasting 25 years. That contract expires in November 2031, when ownership is to transfer to PSALM.
MGEN’s other coal developments include the Toledo project in Cebu, with capacity of 73 MW, and Atimonan in Quezon, with capacity of 1,200 MW. The company previously obtained Department of Energy confirmation that neither project is covered by the existing coal moratorium.
