Meralco PowerGen Corporation signed a Shareholders’ Agreement with First Metro Investment Corporation (First Metro) for the latter’s 22% stake in Global Business Power Corporation (GBPC).
GBPC is one of the largest independent power producers in the Visayas. It currently owns and operates nine power plants with a total installed capacity of 627 megawatts (MW).
MGen believes the investment seals a strategic alliance combining the resources and expertise of MGen and GBPC to respond to the growing need of ensuring a stable supply of reliable and cost-competitive power for the country, particularly the Visayas and Mindanao.
In early 2013, MGen and GBPC signed a Memorandum of Understanding (MOU) to pursue selected power generation projects in Mindanao.
The resulting ownership structure of GBPC is as follows, First Metro with 4.73%, ORIX with 22%, MGen with 22% and GT Capital retaining its majority ownership at 51.27%.
GBPC’s major plants are located in Toledo City in Cebu and in Iloilo City in Panay Island, supplying power to private utility companies such as Visayan Electric Company (VECO) and Panay Electric Company (PECO), export and industrial zones in Mactan and Balamban, mining and industrial companies like Carmen Copper Corporation (CCC) and Philippine Phosphate Fertilizer Corporation (Philphos) as well as electric cooperatives in most Visayan islands.
From a 230-MW mainly bunker fuel capacity in 2006, the company has completed a 410-MW expansion program for its plants, utilizing clean coal-fired technology. The expanded plants commenced commercial operations in 2011. Two expansion projects are on stream: an 82 megawatt plant in Toledo City and a 150 megawatt expansion in Panay.
Learn more about GBPC.