Manila's Global Power in $500 mln deals with Formosa

MANILA Mon Nov 12, 2007 10:02am GMT

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MANILA Nov 12 (Reuters) - The power unit of the Philippines' largest bank, Metropolitan Bank & Trust (MBT.PS), said on Monday it would sign two deals worth $500 million with Taiwan's Formosa Heavy Industries to jointly build coal-fired power plants.

Global Power Resources Corp said the coal-run plants to be built at its power stations in Cebu City and Panay island, in the centre of the Philippines, will have a generation capacity of 246 megawatts and 164 MW, respectively.

Jesus Alcordo, president of Global Power said the new coal-fired plants were meant to ensure a stable and steady power supply in the central Visayas region.

Construction for the new plants in Cebu and Panay will start in January and March 2008 respectively, Alcordo said, and commercial production was expected to begin in January and March of 2010.

Global Power is the largest independent power producer in the Visayas, with total plant capacity of over 230 MW, while heavy equipment maker Formosa Heavy Industries owns and operates over 14,000 MW of coal fired plants in Taiwan, China and Vietnam.

Global Power buys most of its coal from Indonesia and the Philippines' Semirara Mining Corp. (SCC.PS). (Reporting by Karen Lema; Editing by Carmel Crimmins)