Doosan Heavy’s $940 million contract to construct coal-fired power plant in Philippines cancelled

• 6 years ago (2018-03-19)
• David Flin

Asia 847 Coal 274

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Redondo Peninsular Energy has terminated a $940 million contract awarded to Doosan Heavy Industries & Construction in 2016 for the construction of a coal-fired power plant in the Philippines. In 2016, Doosan Heavy was awarded the EPC contract to build the Subic Redondo plant about 130 km northwest of Manila.

However, in a regulatory finding, Doosan Heavy Industries & Construction said that the EPC contract for the coal-fired power plant was no longer effective, and officially terminated the contract with immediate effect. Doosan Heavy said that the Philippines’ Energy Regulatory Commission had delayed energy tariff approval for the project.

Under the terms of the contract, Doosan Heavy was responsible for the execution of the entire project, including the design, production, installation, and operation of the plant’s equipment and facilities.

The power plant had been scheduled for commissioning by the end of 2020 and would have featured 300 MW-class Circulating Fluidised Bed (CFB) boiler technology.

In 2016, Doosan said that the Philippines Government aimed to have 15 GW of installed power generation capacity by 2030, with CFB power plants accounting for 30-40 per cent.