Taiwan Cogeneration Corporation (TCC) has reached an agreement with two Philippine companies – Meralco Power Generation Corporation (MPGC) and Therma Power Inc (TPI) – to jointly invest $1bn in constructing a power plant in Subic Bay in the Philippines.

MPGC will hold a stake of 50 per cent plus two shares in the power project, while TCC and TPI – a subsidiary of AboitzPower – will each have an equal share of the remaining equity.

Construction of the 600 MW Redondo Peninsula Energy power plant is scheduled to start in early 2012. The plant will consist of two 300 MW coal fired units built in two phases. TCC and TPI had earlier planned to build just one 300 MW unit at the site, but the project plan has been expanded with the entry and extra investment of MPGC.

The power plant will supply the northern Luzon Island in the Philippines.

For more coal fired generation news click here