MANILA, Philippines – Manila Electric Co. (Meralco), the country’s top power distributor, is looking to expand its business in new areas within and outside its franchise area, its top official said.
“We are looking for opportunities in new areas. We’re looking in the north Pampanga all the way to La Union,” Meralco president Oscar Reyes said.
He said the company is also eyeing the southern part of Luzon such as the Laguna area.
“In the South we are looking (from) parts of Laguna where we’re not yet there to the Batangas (area),” Reyes said.
Outside its franchise area, Meralco may also establish presence in the Visayas or Mindanao by acquiring a stake in existing distribution utilities or electric cooperatives (ECs).
“As far as parts of Visayas and Mindanao, our objective is those areas where Meralco can be of value because we have the resources, we have the track record and we have the experience. Because if there are already utilities there, private distribution utilities or ECs doing a good job there, Meralco can contribute. In that way we can help improve the countryside, we help improve the communities because we observed that when we go to certain areas, other businesses follow,” Reyes said.
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Meralco has also signed an agreement with the Philippine Economic Zone Authority (PEZA) for a 25-year agreement covering the power distribution facilities in the Cavite Economic Zone (CEB).
The agreement will allow Meralco to operate and maintain the power distribution facilities inside the economic zone until May 2039.
CEZ, located 30 minutes away from Manila in Rosario, Cavite, is the largest among the economic zones owned by PEZA. It is host to 400 multinational, industrial and commercial locators.
In a disclosure to the Philippine Stock Exchange, Meralco said the agreement allows it to provide distribution utility services within the CEZ area, as well as invest a total of P300 million for the improvement of the CEZ power distribution system and customer service facilities during the 25-year period.
“The agreement leverages Meralco’s more than 100 years of experience in electricity distribution and customer-centered service in support of PEZA’s vision of moving CEZ close towards being a world-class investment destination,” Meralco said.
