Business World Online
Posted on February 11, 2011 07:02:05 PM
ABOITIZ POWER Corp. plans to spend $1.5 billion in the next three years to build new coal-fired power plants in Subic and Davao, the firm’s top executive said on Friday.
Erramon I. Aboitiz, Aboitiz Power chief executive, told reporters in a press briefing the Subic and Davao plants will have bigger capacities than earlier planned.
Mr. Aboitiz said the planned capacity of the Subic coal power plant will be hiked to 600 megawatts (MW) from 300 MW. The Davao power plant’s capacity will increase to 300 MW from 150 MW because "it’s a good time to start building new power plants with the high demand in power." Both plants are expected to start operations in 2014.
"Businesses are in a good position … Demand for electricity [is] still going up," said Mr. Aboitiz.
Aboitiz Power is finalizing the engineering, procurement and construction contract with Formosa Heavy Industries for the Subic power plant. It expects to begin construction within the year.
Mr. Aboitiz said the company also wants to cover more areas in southern Mindanao. "There is currently an imbalance in power generation. Most of the facilities are all up north [of Mindanao], so it makes sense to put more capacity down south," said Mr. Aboitiz.
He said the Davao coal power plant will also help Mindanao reduce dependence on hydroelectric power. Aboitiz Power has smaller hydroelectric projects in Mindanao.
For the nine-month period that ended September 2010, Aboitiz Power recorded a 354% increase in core profit to P18 billion, from P4 billion in the same period last year.
Mr. Aboitiz said the planned capacity of the Subic coal power plant will be hiked to 600 megawatts (MW) from 300 MW. The Davao power plant’s capacity will increase to 300 MW from 150 MW because "it’s a good time to start building new power plants with the high demand in power." Both plants are expected to start operations in 2014.
"Businesses are in a good position … Demand for electricity [is] still going up," said Mr. Aboitiz.
Aboitiz Power is finalizing the engineering, procurement and construction contract with Formosa Heavy Industries for the Subic power plant. It expects to begin construction within the year.
Mr. Aboitiz said the company also wants to cover more areas in southern Mindanao. "There is currently an imbalance in power generation. Most of the facilities are all up north [of Mindanao], so it makes sense to put more capacity down south," said Mr. Aboitiz.
He said the Davao coal power plant will also help Mindanao reduce dependence on hydroelectric power. Aboitiz Power has smaller hydroelectric projects in Mindanao.
For the nine-month period that ended September 2010, Aboitiz Power recorded a 354% increase in core profit to P18 billion, from P4 billion in the same period last year.
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