Thursday, May 19, 2011

Aboitiz Power may need P50b to fund coal plants

Manila Standard Today
Aboitiz Power Corp. is borrowing up to P50 billion this year to finance two major coal projects in Subic and Davao set for construction before the end of 2011, a top official said Wednesday.
Aboitiz Power president and chief executive Erramon Aboitiz told reporters in a press conference that the company was in talks with several banks to finance the construction of the 150-megawatt coal project in Davao City and another 600-megawatt facility at the Subic Freeport.
He said Redondo Peninsula Energy and Therma South, units of Aboitiz Power, would be directly in-charge of Subic and Davao coal projects, respectively.
“We haven’t really signed any mandate yet, we’ve just been talking to different banks about its possibility,” Aboitiz said.
He said two-thirds of the amount would be allocated for the Subic coal project and the rest for Davao.
The planned P50-billion fund raising is contingent on the company’s final decision whether it will stay with the original 300-MW Subic coal plant or to expand it to 600 MW.
For Davao, Aboitiz said the power firm is just waiting for the endorsement from Davao City Council and the environmental compliance certificate from the Department of Environment and Natural Resources. Jeremiah F. de Guzman

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