Trans-Asia Oil and Energy Development raise stakes for phase 2 of their Batanagas project

Trans-Asia Oil and Energy Development Corp. on Thursday said it is investing up P1.5 billion for Phase 2 of its South Luzon Therma Energy Corporation coal project in Batangas.

With joint venture partner AC Energy Holdings Inc. a Ayala Corporation subsidiary, Trans-Asia is now building the first unit of the coal project, comprising a 135-MW circulating fluidized bed thermal power plant due for completion by 2014.

“Please be informed that at the regular meeting of the board of directors of Trans-Asia held  the following actions were taken to invest up to P1.5 billion in SLTEC to finance the construction of the second unit ,of the SLTEC power plant in Calaca, Batangas” the company noted during the stockholders’ meeting Thursday.

The company is preparing for financing of second unit, with the first phase set to be completed by the fourth quarter next year, Trans Asia president Francisco Viray told reporters at the sidelines of the stockholders’ meeting.

Estimated to cost P10 billion, Viray said 70 percent of the cost of Phase 2 will come debt and P3 billion will be sourced from shareholders’ equity at P1.5 billion each.