Semirara vice chairman Isidro Consunji said the company is currently evaluating vendor proposals and a decision is expected to emerge within the next 60 days.

The company would also need to secure financing for the project and is likely to tap Sy-led BDO Capital and Investment Corp.  to help arrange a deal, although a formal agreement has yet to signed for now.

Semirara’s board recently approved its plan to pursue the expansion of its Calaca, Batangas power facility, which aims double the company’s generating capacity to 1,200 MW.

The company plans to build the facility in stages and will comprise four units of 150 MW circulating fluidized bed power plants. The initial stage will comprise the first 300-MW capacity.

Consunji said the company is likely to pursue the project on its own, given expectations that power demand will remain strong in the coming years. Semirara was in earlier talks with local and foreign partners, although the pace of discussions moved slower than expected.

Local stock brokerage firm CitisecOnline, which has a “buy” rating on Semirara, said the decision to use circulating fluidized bed technology will allow the company to operate using lower grade coal.

“Should this technology be implemented successfully, it would lead to huge cost savings as the company currently has low-grade coal inventory of 400,000 metric tons and would require lower cost to wash the coal that would be needed for the new plant,” CitisecOnline said. Semirara shares declined 0.19 percent to P213 each on Friday’s trading. 

(Miguel R. Camus)