Aboitiz Power plans capacity expansion

Manila Times.net

THE power unit of Aboitiz Equity Ventures Inc. (AEV) plans to add generating capacity to meet domestic demand.

In a briefing, Erramon Aboitiz, AEV president, said Aboitiz Power Corp. (AP) would accelerate the expansion of its Subic coal-fired power plant, increasing it to 600 megawatts from the original plan of 300 megawatts.

“The demand of electricity is quite strong so it’s good if we proceed with both phases,” Aboitiz said.

The proposed Davao coal-fired plant, on the other hand, would be raised to 300 megawatts.

Aboitiz said the two power plants would be fully commissioned between 2012 and 2014 in time for the anticipated spike in demand by 2014.

AP is set to bid out the engineering, procurement and construction contract for the Subic power plant.

The company plans to put up a 600-megawatt coal plant at the Subic Freeport through Redondo Peninsula Energy Inc. (RP Energy), a joint venture company with Taiwan Cogeneration International Corp.

Last year, RP Energy said it would pursue the construction of a 300-megawatt coal-fired power plant in Subic Freeport after it was deferred because of the global financial crisis.

AP will also build two or three mini hydroplants in Davao this year with a combined capacity of 26 megawatts.

Aboitiz said AP will keep its capital expenditure target of $500 million a year in the next five years.

In the next three years, the company will spend $1.5 billion for its Subic and Davao coal-fired facilities.

Its shares rose to P27.65 on Friday from P27.30 on Thursday.

Krista Angela M. Montealegre

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