MANILA, Philippines—Aboitiz Equity Ventures Inc. plans to allocate P49 billion for the capital expenditures of its various units this year, with the bulk to fund proposed coal-power projects.
Stephen G. Paradies, senior vice president and chief financial officer of AEV, said in an interview that P46 billion of the budget would go to Aboitiz Power Corp.
“This is inclusive of the share of our partners in those power businesses where we have partners. So if you take just our proportionate share of APC, it amounts to P24 billion,” Paradies explained.
According to Paradies, the planned capex for APC would assume the construction of a 300-megawatt coal-fired power plant in Subic, together with the company’s partner. APC, however, was considering to increase the capacity of the project to as much as 600 MW, which meant the project cost would rise.
Paradies said APC was targeting to raise as much as P51 billion in borrowings to specifically fund two power projects over the next few years.
He earlier explained that the company would start arranging syndicated loans for its coal power projects in Subic and Davao beginning the second half of this year.
The planned borrowing for the Subic power project might either be P17 billion, if the company would pursue a 300-megawatt coal facility, or P34 billion, should it decide to construct a 600-MW power plant.
For the Davao project, APC was also looking at raising P17 billion for its proposed 300-MW coal fired power plant.
Paradies clarified that the amounts he cited consisted only of the debt portion of the planned projects and would be drawn down by APC in tranches over a certain period. For these borrowings, the company was looking at longer tenors of about 12 years, he added.
The planned Subic coal power project was being undertaken with Taiwan Cogen International Corp. through a special vehicle company called Redondo Peninsula Energy Inc.
APC president and CEO Erramon I. Aboitiz earlier said the company was already finalizing its engineering, procurement and construction contract with Formosa Heavy Industries. APC expects to start construction of the Subic coal facility within the year.
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