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Alsons signs power pact with 2 coops

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The Sarangani Energy Corporation (SEC) , a subsidiary of the Alcantara Group's publicly- listed holding firm- Alsons Consolidated Resources (ACR), recently entered into two separate Power Sales Agreements (PSAs) with the Agusan Del Sur Electric Cooperative, Inc. (ASELCO) and the Davao Del Norte Electric Cooperative, Inc. (DANECO).

Under the agreement, ASELCO and DANECO will be provided respectively with 10 Mega Watts (MW) and 15 Mega Watts (MW) of capacity from SEC's state-of-the-art coal fired power plant in Maasim, Sarangani Province, once theplant commences operations in 2015.

The first phase of the SEC power plant will have the capability to produce up to 105 MW of power with the potential to increase generating capacity up to 210 MW when the second phase of the plant comes online.

PASELCO is the power distribution utility responsible for dispensing electricity to more than 56,000 consumer nembers in the Province of Agusan del Sur. The ASELCO service area covers all 13 municipalities of Agusan del Sur and Bayugan City, the province's only city.

DANECO distributes electricity to over 129,000 households and establishments in the cities of Tagum and Samal and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao Del Norte as well as the entire Province of Compostela Valley. Early in 2011, SEC signed a PSA with the South Cotabato II Electric Cooperative, Inc. (SOCOTECO II) providing 70 MW for the cooperative which services General Santos City, the entire Province of Sarangani and two municipalities in South Cotabato.

These agreements were forged in anticipation of a power supply shortage in Mindanao by 2014 due to the lack of power generating facilities to supply the growing power demands of the island's expanding population. Mindanao experienced half -day brownouts in the summer of 2010 when hydroelectric power sources powering the Mindanao grid succumbed to the El Nino phenomenon.

Thjs year, power outages have again become frequent throughout the entire Mindanao. The National Power Corporation (NPC) has had to cut allotted power supply to
several Mindanao electric cooperatives. The agreements with SEC will assure that resident consumers serviced by ASELCO, DANECO, and SOCOTECO II will have adequate supply of electricity.

The Alcantara Group is building a second coal-fired power facility in Zamboanga City and operates two diesel fired power plants located in Zamboanga City and Alabel, Sarangani.Aside from power generation and power plant management, the Group is engaged in aquaculture and agribusiness, real property development, and services. The Alcantara Group has been an active player in the economic development of Mindanao and the rest of the Philippines for over fifty years.




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