EGCO acquires interest in Masinloc Power Plant

July 4, 2014

Electric Generating Public Co. Ltd. (EGCO) acquired a minority interest in the 630-MW Masinloc coal-fired power plant from AES Corp., one of the biggest US power generation company.

Under the terms of the agreement, EGCO will own 40.95% indirect stake in Masinloc Power Partners Co. Ltd. (MPPCL) valued at US$453 million. AES will continue to manage and operate plant. With the completion of the transaction, AES’s ownership will be reduced to 51% while International Finance Corp. will retain its 8.05% interest. The proceeds of sale will be used for the planned expansion of the plant.

EGCO’s investments in the Philippines also includes its 98% interest in Quezon Power (Philippines) Ltd. Co., the operating company for the 460MW geothermal power plant located in Mauban, Quezon.

PJS Law acted as Philippine legal counsel of EGCO in this transaction and was led by Partners Monalisa C. Dimalanta and Najha Katrina J. Estrella, assisted by Rachelle M. Diaz, Rowena Fatima M. Salonga, Francis Alvin V. Asilo, Rafael A. Evangelista, Maria Esther Vanguardia-de Antoni.