Perked up by demand increase forecasts, Trans-Asia Oil and Energy Development Corporation is lining up 25-megawatt expansion of its CIP II power facility inside the Carmelray Industrial Park in Calamba, Laguna.

In a disclosure to the Philippine Stock Exchange (PSE), the company sought re-allocation of proceeds from its previous initial public offering (IPO) to partly bankroll the power facility’s expansion.

Trans-Asia senior vice president for finance Ponciano L. Dimayuga told the local bourse that P378.5 million will be aligned for the expansion of the CIP II power project. The undertaking will be subject to the approval of the company’s stockholders as well as the Securities and Exchange Commission.

The project’s implementation is targeted before the end of 2009, according to Trans-Asia president and CEO Francisco L. Viray. The venture would more or less double the plant’s current capacity of 21 megawatts.

The company said it expects demand growth with the prospective entry of new customers as well as the expansion programs of existing locators in the ecozone.

The company implemented rehabilitation works both on its generation and distribution facilities the previous year to improve equipment reliability.

For the distribution system servicing the locators’ electricity needs, it was recently sold by Trans-Asia to the Manila Electric Company.

Despite the dent triggered by the global financial crisis, economic growth prospects are seen bouncing back starting 2010, especially for the manufacturing and electronics sectors.