Southern Energy Acquires Stake in Philippine Power Station
Southern Energy Inc. (Atlanta, GA) announced the acquisition of a 20 percent interest in a 1,250MW power station under construction in Batangas, Philippines, for approximately $35 million. The power station, to be fueled by natural gas, will use the latest combined-cycle technology and advanced emission-control equipment to maximize efficiency and environmental performance. The project includes a 20-year power sales agreement with National Power Corporation (NAPOCOR) of the Philippines, which gives NAPOCOR rights to 1,200MW of the station's capacity.
Southern Energy's co-owners in the project are Korea Electric Power, with a 51 percent interest; Mitsubishi, with 21 percent; and Kyushu Electric Corporation, with 8 percent. The "build-own-transfer" agreement with NAPOCOR calls for the transfer
of the ownership of the plant to NAPOCOR after 20 years. In addition to its 20-percent ownership, Southern Energy will have the right to market electricity produced by plant in excess of the amount sold under its contract with NAPOCOR. Southern Energy also will assume an active role in the operations and general management of the facility.
“Taking part in this project further strengthens Southern Energy's standing as the premier independent power producer in Asia, supporting our strategy of being a major market player in three major regions of the world: North America, Asia-Pacific and Europe," said Frederick D. Kuester, chief executive of Southern Energy's Asia-Pacific Group.