DMCI Holdings Inc  is planning to build a cement plant on Semirara Island in the Visayas worth PHP18.3bn in an industry dominated by foreign manufacturers.

The company hopes it can ride on the government’s infrastructure programme. Victor Limlingan, DMCI managing director, said the company is spending a total of US$380m (about PHP18.3bn) for the cement-manufacturing venture, building a cement plant and three separate grinding plants located in Batangas, Iloilo and Zamboanga, three areas that can cover the entire Philippine market.

Most funds will go to DMCI’s cement plant, which costs about US$180m (PHP8.96bn). It will have a capacity of 1.7Mta and a 400,000tpa capacity for the cement mill. It will also put up a 30MW thermal power plant on Semirara Island costing about US$80m (PHP3.98bn). The grinding plant in Calaca, Batangas, will cost some US$50m (PHP2.488bn) and US$35m (PHP1.74bn) each for its plants in Zamboanga and Iloilo.

He admitted DMCI is taking a risk on such a capital-intensive project if the Duterte administration’s push for public-private partnership projects fails to move forward. The limestone will come from Semirara Island.

The entire project may take between two and three years to complete. Limlingan said 70 per cent of the project cost of about US$266m (PHP13.239bn) will be funded by debt and the rest of the US$114m (PHP5.674bn) will be by equity.

He said the company has not decided yet on which of the DMCI firms will own the cement-manufacturing venture. Limlingan said the company has commissioned a number of cement plant manufacturers and is on the verge of entering a contract with them in the coming days or months.