by Alena Mae S. Flores – October 12, 2016 at 11:25 pm
from Manila Standard Today
Power retailer Manila Electric Co. said Wednesday it signed a joint venture and shareholders’ agreement with local company Blue Energy Holdings and Management Corp. to build hydropower projects in the country.
“Under the JVA, the company and Blue Energy shall put up a joint venture company through which the company and Blue Energy will jointly pursue and undertake the development of various hydroelectric power projects,” Meralco said in a disclosure to the stock exchange.
Blue Energy is a local company, which is a part of Meralco’s joint venture with Repower Energy Development Corp. of the Tiu family.
Meralco said under the agreement, the company agreed to subscribe to new shares of the joint venture to be incorporated by the parties worth P3.125 million, divided into 3,124,999 shares with a par value of P1 per share.
“Said shares represent 50 percent minus one share of the authorized capital stock of the proposed JVC,” it said.
Meralco, the country’s biggest power distributor, is pursuing the development of renewable energy projects such as solar and hydropower plants aside from coal projects under Meralco PowerGen Corp.
Repower earlier acquired Philippine Power and Development Co., owner of the country’s three oldest operating mini-hydropower plants including Balugbog, Calibato and Palapakin hydro plants.
Repower allocated P300 million to upgrade the Laguna-based low-impact hydro plants, with the latest run-of-river system technology.
Aside from Laguna, the company is also developing over 50 megawatts of mini hydropower plants in the provinces of Quezon, Bukidnon and Camarines Sur.