EGCO International (BVI) Co., Ltd. (“EGCO BVI”), EGCO Group’s wholly owned subsidiary, purchased 90% of the outstanding shares of GPI Quezon Ltd (“GPIQ”) providing a 23.4% indirect holding in Quezon Power (Philippines) Limited Co., (“QPL”). QPL owns, operates and maintains a 460MW (net) coal fired IPP in the Philippines (the “Quezon Power Project”). As a result, EGCO Group’s MW equity would increase by 107.64 MW and is the strategic step to expand its presence in the region..
Vinit Tangnoi, EGCO Group President stated that the acquisition is in line with EGCO Group’s business plan to invest in power businesses in the ASEAN region to supplement EGCO’s domestic portfolio of IPP assets. The acquisition is expected to be accretive to EGCO’s earnings in 2009. In addition, the acquisition has enabled EGCO group to increase its owned generation capacity to 3,934.14 MW as well as broaden its presence in the Philippines and we expect it should provide a platform for additional growth opportunities in the future
QPL owns, operates and maintains a 460MW (net) baseload pulverized coal-fired electric generation facility, a 31km, 230kV double circuit transmission line and certain related facilities in Quezon Province in the Republic of the Philippines. The plant is strategically located in the Island of Luzon which has the largest population and the largest electricity grid in the Philippines. The Quezon Power Project has been operational since May of 2000 and has achieved excellent operational and safety records. Key commercial contracts which are in place for the Project include a long-term Power Purchase Agreement with Manila Electric Company (PPA), long-term coal supply agreements, as well as long-term O&M, and management services agreements.