Monday, June 2, 2014

Aboitiz awards contract for coal-fired plant

Business World Online
Posted on June 02, 2014 09:23:26 PM

ABOITIZ POWER Corp. said a wholly owned subsidiary has concluded agreements with contractors to build a 300-megawatt (MW) coal-fired power plant in Toledo, Cebu.

The company said in a statement attached to a disclosure yesterday that “Therma Visayas, Inc. (TVI)... signed an engineering, procurement and construction (EPC) contract with Hyundai Engineering Co. Ltd. and Galing Power Energy Co., Inc. after two months of negotiations.”

The listed power firm said TVI will be issuing a notice to proceed to conduct the engineering and detailed data collection in preparation for the construction of the P41-billion plant, which is due for completion in the third quarter of 2017.

The plant will have two steam turbines and two circulating fluidized bed boilers. It will create an estimated 1,500 jobs during construction and around 150 permanent jobs for plant operations.

Aboitiz Power said it will seek financing for the project with local financing institutions.

“This project will assure Cebuanos that we will have adequate and competitively priced baseload power supply in the island by 2017. This is a very important project for the Visayas grid,” the company’s president and chief executive officer Erramon I. Aboitiz said.

Aboitiz Power is an arm of Aboitiz Equity Ventures, Inc.(AEV), the listed holding firm of the Aboitiz family.

In January, AEV said it allotted some P88 billion for capital expenditures (capex) this year, up from P59 billion a year earlier. The bulk of the capex -- around P78 billion -- was allocated to the power business.

Aboitiz Power closed at P36.50 yesterday, up 50 centavos or 1.39%. -- Claire-Ann Marie C. Feliciano source

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