Lopezes eye major projects in Iloilo, Negros Occ.
Going back to their roots, the Lopez family is expanding its business interests by investing in major projects in their home province of Iloilo and the neighboring Negros Island.
Oscar Lopez, chair of the Lopez Group of Companies, said their group will invest in the ship-building industry that will be based in Iloilo.
"I think Iloilo, definitely, must get into ship-building," Lopez told reporters on Tuesday at the sidelines of the Iloilo Investment Forum.
This is the first time that the Lopezes will be investing in ship-building in the 81 years of the Lopez family businesses, according to Ricardo Yatco, vice president for business development of the First Philippine Holdings Corp., one of the holding companies under the Lopez Group.
Started in 1926 by Ilonggo brothers Eugenio Sr. and Fernando Lopez, the family business has already extensive interests in communication, utilities, power generation and distribution, property and construction through a series of holding companies.
Oscar Lopez said they are eyeing the building of mostly large cargo ships ranging from 100,000 to 200,000 gross tons.
He said the specific details of the project would depend on a foreign partner that the company is seeking to tap.
"They can provide the technology and the market," he said.
Yatco, who was brought in by Lopez to scout for possible sites of the project in Iloilo, said they prefer to tap a foreign partner who is already involved in the ship-building industry.
He said the ship-building investment would be on the level of international ship-builders in Cebu and Subic
Lopez said Iloilo has the natural and human resources for the investment citing the Ilonggos who are working in ship-building companies in other countries.
"This is one source of skilled manpower we can tap," said Lopez.
Yatco said the project will be finalized within the next five years.
Lopez also announced major investments in the energy sector with a bid for control of the Palinpinon geothermal plant in Valencia town in Negros Oriental.
He said the Lopez Group will bid for the 192.5-megawatt plant through the Philippine National Oil Company Energy Development Corporation (PNOC EDC).
The geothermal plant, consisting of two power stations, is located between the islands of Panay and Cebu. It supplies 60 mw to Panay to supplement the power demand deficiency in the island.
The Lopez Group last week took control of the PNOC EDC after it submitted the highest bid for P58.5B for the remaining 60 percent government stake in the PNOC's geothermal subsidiary.
The bid was submitted by the Red Vulcan Holdings Corp., a consortium of First Gen Corp., Spalmare Holdings BV, and Terracota Holdings Corp.
Lopez said full payment for the PNOC EDC will completed by Friday this week.
If the PNOC-EDC takes control of the Palinpinon facility, this will help provide cheap and stable energy to Panay Island, according to Lopez.
"Right now most of the power from Palinpinon goes to either Negros or Cebu. It's just the residual that comes to Panay. We would like to reverse that and bring more of the power to Panay," said Lopez.