Marubeni Corporation (“Marubeni”) and Tokyo Electric Power Company (“TEPCO”) announce that TeaM Energy Corporation (“TEC”), a joint venture between Marubeni and TEPCO, will build a third unit (the “Project”) at the Pagbilao Coal-fired Power Plant, adjacent to TEC’s existing Units 1 and 2.
Following the completion of the pre-requisites under the loan, construction, and related contracts, we have started construction of the Project through a joint venture between TEC and Aboitiz Power Corporation, one of the leading power generation companies in the Philippines. The generation capacity is 388MW and commercial operation is scheduled to commence in November 2017.
Construction of the Project will be undertaken by a consortium of Mitsubishi Hitachi Power Systems, Ltd. (“MHPS”) of Japan and Daelim Industrial Co., Ltd (“Daelim”) of Korea under a full turnkey contract.
Marubeni has been playing an active role as an Independent Power Producer in the Philippines through its investment into four existing power plants. Upon completion of the Project, Marubeni’s power assets in the Philippines will be approximately 4,000MW (gross), which is one-fourth of the total installed capacity in the country. With high economic growth, demand for social infrastructure is expected to increase continuously in the Philippines. Marubeni is committed to further contribution to the development of the country through stable and efficient power supply.
In the TEPCO Group Action Plan published on March 31, 2014, TEPCO issued a policy to expand its overseas IPP investment business by utilizing existing overseas project companies. By implementing the Project, TEPCO intends to contribute to the development of the Philippines through the electricity business, effectively utilizing its generation technology and know-how in regard to the operation of power plants gained over many years. Moreover, in order to realize the revitalization of Fukushima, TEPCO aims to further accumulate expertise in relation to overseas thermal power generation businesses, to strengthen its revenue base and enhance profitability.