Holcim Philippines renews power contract

Holcim Philippines renews power contract
Published: 23 November 2007

Holcim Philippines Inc. has renewed its power supply contract with the National Power Corporation (NPC) to provide electricity supply.

Under the Contract for the Supply of Electric Energy (CSEE) signed by NPC and Holcim last month, NPC will supply the cement plant in Lugait, Misamis Oriental with 148.9 megawatt-hours per year. The contract will be effective for a period of five years beginning November 26, 2007 to November 25, 2012.

Holcim, considered to be the biggest cement producer in the Philippines, operates four cement plants in the country situated in Bacnotan, La Union; Norzagaray, Bulacan; Davao City; and Lugait, Misamis Oriental. Collectively, these plants are capable of producing 8.7Mta of cement per year. Holcim also has a total installed clinker production capacity of 7.2Mta.

With the new supply contract with Holcim, NPC is estimating to get P56 million (US$1.3m) in revenue per month, or roughly P670 million per year.

"As with other NPC customers, the charges that will be applied to Holcim will be based on the Time-of-Use rate schedule approved by the Energy Regulatory Commission," del Callar said.