Sarangani Energy hikes authorized capital to P4.25 B

GENERAL SANTOS CITY (MindaNews/27 June) – The Alcantara-controlled Sarangani Energy Corporation (SEC) on Wednesday announced it has increased its authorized capital to P4.25 billion (US$100 million) as the company gears for the start of the construction of its 200-megawatt power plant project in Maasim, Sarangani.

“The increase in capital stock will cover equity in the development, construction and operation of the SEC Power Plant in Maasim, Sarangani,” a press release from the company said.

The company’s equity also represents 4.25 billion shares at P1 per share. The Alcantaras are the controlling investors in SEC which also include EGCO of Thailand.

SEC took over as the implementing company of the power plant project from Conal Holdings Corporation with an initial paid up capital of P5 million.

The increase in the authorized capital also came following company disclosure that contract to build the two-stage US$450 million power plant had already been awarded to Daelim Industrial Co. Ltd of South Korea.

Daelim “has been given clearance to proceed with work on the plant’s first phase,” which contract covers the plant’s engineering, procurement, and construction.

Executives and engineers from Daelim’s plant project team recently flew in from Seoul to the plant site in barangay Kamanga in Maasim, Sarangani to conduct an ocular inspection of the site.

They were met by Maasim Mayor Art Lawa and SEC field personnel.

Company officials said the review of the detailed design and engineering works will run through the fourth quarter of 2012.

“The first phase of the SEC Power Plant is expected to commence operations in early 2015,” the company further said.

Actual construction could begin as early as the first quarter of 2013.

The power plant project is a two-phase complex of two 100-megawatt plants each. The second phase will commence within 18 months of the start of the first phase.

The power plant is expected to ease perennial supply shortfall in the region as SEC already has a supply contract with the South Cotabato II Electric Cooperative (Socoteco II).

SEC and Socoteco last year signed a power sales agreement (PSA) for the supply of base load capacity of 70 megawatts. The PSA is awaiting approval from the Energy Regulatory Commission. (Edwin Espejo / MindaNews contributor)