Global Business Power Corp. (GBP) and a Cebu-based corporation will enter Luzon through a partnership that will put up a 670-megawatt (MW) coal-fired power plant in La Union.
In a disclosure, Vivant announced that its Vivant Integrated Generation Corp. (VICG) has signed a pre-development agreement with GBP to build a 2×335-MW coal-fired power plant in Luna, La Union.
The two companies will jointly participate through Lunar Powercore Inc. in a project under a special purpose vehicle Global Luzon Energy Development Corp. (GLEDC).
GLEDC will undertake the financing, design, procurement, construction, testing, commission, operation, and maintenance of the coal plant.
An allocation of P450 million was allocated for the activities to be conducted under the said deal.
The coal plant is seen to begin commercial operations by 2022.
GLEDC has already secured local government endorsements and land conversion certificates. Meanwhile, transmission route surveys and engineering, procurement, and construction (EPC) selection are ongoing.
The coal project is waiting for its Energy Regulatory Commission’s approval for its power supply agreement (PSA) of up to 600 MW with the Manila Electric Co. (Meralco) signed in 2016.
It is also waiting for the issuance of its environmental compliance certificate from the Department of Environment and Natural Resources (DENR).