Meralco to spend P4.5B on remaining 2011 capital projects

Manila Electric Co. plans to spend around P4.5 billion for its remaining projects for 2011, a company official reported Tuesday. In an interview with reporters, Meralco chief operating officer Oscar Reyes said the firm has spent around P4 billion out of the total P8.5 billion allotted for the year. “The [P4.5 billion] is for substations, transformers and other capital expenditures aimed at essentially further enhancing reliability and quality of service and also make our system more robust to provide 24/7 service," Reyes said. Meralco usually spends its capital budget on projects such as those involving the construction of new distribution lines and the replacement of defective power transformers, among other things. Lower capital expenditure Reyes explained that the company is prepared to spend around P10.5 billion to P19.9 billion, but the regulator approved of a lower capital expenditure. “We will prioritize capital projects that are for distribution service, that will enhance the quality of service to our customers," the Meralco official said. For the entire year, Meralco expects its core net income to reach P14 billion, a 15-percent increase from the figures in 2010. The firm’s first-half core net income went up 35 percent to P7.8 billion from P5.8 billion in the same 2010 period, Reyes said. “On the basis that our electricity sales in the second half this year will be broadly similar to that realized in the first half, and reflecting slightly lower distribution tariffs for this period as a consequence of the 3rd Regulatory Period, we are guiding our core net income for the full year 2011 at P14 billion, 15 percent better than last year," Meralco president and CEO Manuel Pangilinan earlier said. — PE/VS, GMA News