By Lenie Lectura – June 11, 2019
from Business Mirror
THE Manila Electric Co. (Meralco) is on track to complete a power substation in New Clark City by the end of this month.
“Our obligation is to complete the substation scheduled for end of June,” said Rogelio Singson, president of Meralco PowerGen Corp., the power generation arm of Meralco.
However, Meralco and partners have yet to be awarded a franchise.
Meralco’s partners include Marubeni Corp., Kansai Electric Power Co. Inc., and Chubu Electric Power Co. Inc. Meralco owns a 60-percent equity stake in the consortium. Meralco and partners signed an agreement with the Bases Conversion and Development Authority (BCDA) for power distribution in New Clark City.
“We have an arrangement with Tarelco (Tarlac Electric Co.) and BCDA to source power. Our joint venture company (JVC) is for distribution only and we can’t contract yet because the franchise has not been granted to the JVC. It was only passed by Congress last week,” Singson said.
Under the JVA, the consortium will put up a special purpose company that will have equity stake equivalent to 90 percent in a JVC to be formed with the BCDA. The JVC will then have pursue and undertake the financing, design, ad engineering, establishment, construction, development, and operation and maintenance of the electric power distribution system in New Clark City.
Singson earlier said it would provide 10 megawatts to 14 MW of power services to New Clark City.
“We’re looking at 10 MW to 14 MW. As far as June or July, the commitment of Meralco will be ready. But how that is connected, that’s the responsibility of BCDA. We’re helping them out in terms of specifications so when it is eventually turned over to Meralco, it is acceptable,” Singson had said.
The 9,450-hectare New Clark City, located within the Clark special economic zone that spans Angeles City in Pampanga and the towns of Capas and Bamban in Tarlac, is the country’s first smart, disaster resilient and sustainable city.
The first phase of the development covering 60 hectares features the National Government Administrative Center that will house backup offices of various government agencies and a world-class sports complex now being constructed in time for the 2019 Southeast Asian (SEA) Games.
Singson said Meralco has committed to make available temporary power for the SEA games.
The new metropolis will also have mixed-use residential, commercial, agro-industrial, educational institutions and information-technology developments.