Metrobank ventures into power with P21-B project

By Ayen Infante

05/12/2008

Global Business Power Corp., a team-up between local firms led by First Metro Investment Corp., a unit of Metrobank and British Virgin Island based Areta Offshore Venture Ltd., is spending over P21 billion for the development of coal-fired power plan in Toledo, Cebu City.

The proposed project has been approved for fiscal incentives by the Board of Investments (BoI) on a pioneer status that would include tax breaks of up to six years.

The Filipino counterpart holds 50 percent stake in the joint venture firm that is also composed of Global Business Holdings with 38-percent stake, while First Metro owns 12 percent.

The firm intends to put up four 82 megawatt coal-fired power facilities that would initially employ 110 workers.

The entire project is expected to be completed in December 2010 using an environment-friendly technology via the circulating fluidized bed.

The additional power capacity would fill the anticipated power shortage by 2010, according to the BoI.

Under the proposed project, the company has made a commitment to sell power at a price even lower than the Napocor’s pending petition to increase rates.

Global business has an existing power generation company but instead of expanding, it has opted to put up a new facility in order to enjoy tax breaks.

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