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Brgy. Tacub Kauswagan, Lanao Del Norte

GNPower Kauswagan Ltd. Co. of the ayala Group is set to go “full blast” with the construction of its 540-megawatt coal-fired power plant in Kauswagan, Lanao del Norte province to help ease the shortage in supply in Mindanao by 2017.

“For Kauswagan, we have made the financial commitment. We have started the project. The engineering design is ongoing [and we just want to] clear the property... We are hoping to go full blast in a month or so,” AC Energy Holdings Inc. president Eric Francia told reporters.

GN Power Kauswagan signed documents on the financial package of the Kauswagan plant last year.

GNPower Kauswagan is controlled by AC Energy, a fully-owned subsidiary of Ayala Corp., the Philippine Investment Alliance for Infrastructure Fund and Power Partners Ltd. Co.

The total project cost, earlier estimated at around $1 billion, will be funded by both debt and equity.

“The construction is ongoing but we are prioritizing the compacting of the property. There are just a few cleanups as well, the resettlement [of the people] is on its final stages,” Francia said.

The plant, consisting of four units of 135 MW each in Barangay Libertad and Tacub in the municipality of Kauswagan, is expected to be in full operation by 2017.

“Mindanao has always been a great source of excitement for Ayala. We have looked at Mindanao with a fresh perspective--investing heavily in Cagayan de Oro, Davao, General Santos, and participated in the development of the Laguindingan airport,” said Ayala chairman and chief executive Jaime Augusto Zobel de Ayala earlier.

GNPower Kauswagan engaged Shanghai Electric Power Construction Co., a subsidiary of Power Construction Corporation of China, for the engineering, procurement and construction of the $1-billion thermal facility in May.

The plant will be equipped with cutting-edge equipment, including four Siemens steam turbines and generators manufactured in Germany.

GNPower Kauswagan has already executed over 300 MW of long-term power purchase agreements and secured an environmental compliance certificate from the Environment Department.

AC Energy also acquired a 17-percent ownership stake in GNPower Mariveles Coal Plant Ltd. Co., owner and operator of a 600-mw coal-fired power generating plant in Mariveles, Bataan.

The Ayala Group is embarking on power projects that can generate 1,000 MW of capacity at a cost of $2.5 billion.