Roxas Holdings and Global Power sign MoU for cogen project
Roxas Holdings, a large integrated sugar business in the Philippines, and Global Business Power (GBPC), a power producer in the Visayas and power generation component company of GT Capital Holdings, have signed a memorandum of understanding (MoU) to undertake a front-end engineering design (FEED) study and other pre-development activities for a 40MW cogeneration facility in La Carlota City, Negros Occidental.
The MoU details the parties' respective duties and responsibilities in the financing, design, construction, ownership and operation of a 40MW biomass power plant which will be located within the premises of Roxas' Central Azucarera de la Carlota sugar facility. The biomass power plant is targeted for completion by 2017. The parties have agreed to establish a joint venture company to operate the plant.
'The cogeneration project will not only help stabilise the power supply in our Negros Occidental plant but will also address the growing concern on energy supply,' says Roxas chairman Pedro Roxas.
Roxaas president and CEO Renato Valencia adds: 'With the ASEAN Free Trade Agreement in place by 2015, the project will enable us to minimise our production cost and optimise our efficiency to stay competitive with our ASEAN neighbours.'