07/06/2012: GNPower to Invest $1 Billion for Additional Power Supply in Luzon
07 June 2012, Washington DC. Officials of GN Power Mariveles Coal Plant (GMCP) in Bataan informed President Aquino of their intention to expand their operations in the Philippines with an investment of close to US$1 billion that could generate thousands of jobs. In his first official activity during his visit to Washington, D.C., President Benigno S. Aquino III met this morning with Dr. Dan Chalmers, Chief Executive Officer of GN Power, Jason Oliver, Senior Vice President for Development of Sithe Global Power, and Robert Warburton of Denham Capital.
President Aquino thanked the group for their investment and expansion. He pointed out that such investments are crucial to the economy, particularly if the Philippines is to sustain and build on the 6.4% GDP growth in the first quarter of the year. He added that the cost of power needs to be brought down to keep Philippines industries competitive, especially the manufacturing sector.
Dr. Chalmers expressed confidence in the Philippines and informed the President that they continue to explore possible projects in other parts of the country, where access to power remains a challenge, such as Mindanao. He also expressed his support for the President's good governance initiatives and affirmed that recent successes are taking the Philippines towards the right direction.
With the only committed base load power project in Luzon and the projected increase in power demand, GMCP intends to develop, construct, install and operate an additional 2x300 megawatt (MW) power blocks. The project is expected to have the lowest marginal operating cost of any coal project on the grid when completed. It will provide significant benefits to the local community by providing employment and reducing electricity costs.
The President was accompanied by Secretary of Foreign Affairs Albert F. del Rosario, Philippine Ambassador to the United States Jose L. Cuisia, Jr. and six other Cabinet members, namely Secretary of Transport & Communications Manuel Roxas, Secretary of Finance Cesar Purisima, Secretary of Trade & Industry Gregory Domingo, Secretary of Tourism Ramon Jimenez, Secretary of Energy Jose Rene Almendras, and Communications Strategy Secretary Ramon Carandang.
Located in Mariveles, Bataan, the Board of Investments-registered project involves the development of two identical 300 MW power blocks using Pulverized Coal Combustion technology. The additional capacity will be situated adjacent to the first two 300 MW blocks, with construction expected to commence in the first quarter of 2013. (END)