Toledo Coal Power Plant

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In July 1994, Toledo Power Co. purchased for US$53 million a 32.5% stake in two power plants on the island of Cebu from the state-owned Atlas Mining & Development Corp. The plants were the 93 MW coal and oil-fueled Sangi station at Toledo and the 42 MW oil-fired Carmen station on Atlas Mining property in Barangay Sigpit. The plants were to be operated by CMS Generation Co. (a subsidiary of CMS Energy, USA), which also assumed the risks of plant cost, financing, in-service debt, plant availability and long-term fuel supply. Power from the plants were to be sold to Napocor (the Philippine National Generation Company) and CEBECO, the local electric cooperative serving the Toledo City area, under existing power purchase agreements which were transferred to Toledo Power. These purchase agreements were due to expire in 2004. Toledo Power was initially owned by CMS Generation Co., A Soriano Corporation (30%, ANSCOR, Phillipines, the owner of Atlas Mining), J.G. Summit Holdings Inc (Philippines) and Chemphil Import & Export Corporation (Philippines). In July 2003, Mirant Corporation (United States) and Metrobank Group (Philippines) established a 50:50 joint venture - Mirant Global Philippines Corp. - that purchased Toledo Power Co. In October 2004, Mirant Global announced that it intended to expand the plant by 100 MW at a cost of US$100 million. As of Dec. 31, 2008, the proposed expansion was being implemented a separate project via Cebu Energy Development Corp. consortium. In May 2006, Mirant Corporation sold its holding in Mirant Global Philippines Corp. to Global Business Power Corporation, a Metrobank subsidiary. As a consequence, Metrobank Group became the 100% owner of Toledo Power Co.