Business World Online
Posted on April 20, 2011 08:11:57 PM
A UNIT of Ayala Corp. has entered into a joint venture deal with a local firm to develop hydroelectric power projects, marking the start of the conglomerate’s foray into this field. This latest initiative, in turn, forms part of Ayala’s plan to build 1,000 megawatts (MW) of generating capacity in the next five years.
"Ayala Corp., through its wholly owned subsidiary, Michigan Power Inc., entered into a joint venture with Sta. Clara Power Corp. for the development of run-of-the-river hydroelectric power projects across the Philippines," the conglomerate said in a disclosure filed on Tuesday and made available Wednesday. Michigan Power, which will have a 70% stake in the joint venture, has committed to initially infuse about P600 million, the statement read further.
"This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies," the statement quoted Fernando Zobel de Ayala, president and chief operating officer of Ayala Corp., as saying.
"This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements," he added.
John Eric T. Francia, managing director and corporate strategy and development head of Ayala Corp., said via e-mail on Wednesday that "The joint venture with Sta. Clara Power will somehow serve as a platform for Michigan Power and Sta. Clara Power to jointly pursue mini hydropower projects in the Philippines."
The Energy department classifies as "mini hydropower" projects those with capacity below 100 MW.
Last month, the conglomerate announced its bid to build a portfolio of over 1,000 MW from both renewable and conventional energy sources. It acquired a 50% stake in NorthWind Power Development Corp. that owns and operates the 33-MW wind farm in Bangui Bay in Ilocos Norte for P500 million. In November last year, Ayala infused P112.5 million into Michigan Power, which had entered into a joint venture with Diamond Generating Asia, Ltd. -- a subsidiary of Mitsubishi Corp. -- to study the viability of solar power projects in the country.
In the disclosure, Ayala Corp. said the run-of-the-river hydroelectric power plant operation involves using river water to turn kinetic energy into electricity, then returning the same unpolluted water back into the river.
Hence, the conglomerate said, the project does not generate harmful emissions, making use of "free," "green" kinetic energy as its fuel.
"Sta Clara Power is one of the few companies with the expertise and focus on run-of-the-river hydropower," Mr. Francia noted.
"Its mother company is one of the few construction companies in the country experienced in building hydro power infrastructure," he said, adding that Michigan Power will be the vehicle for the hydropower ventures.
Sta. Clara Power is majority-owned by Sta. Clara International Corp., a construction company with local and overseas projects. The mother firm, which started operations in 1976 as Sta. Clara Trading and Construction Co. before being incorporated as Sta. Clara International in 1990, also has branches in the United Arab Emirates, Oman and Qatar. Sta. Clara Power’s current projects include the 1.2-MW Loboc hydro power facility in Bohol and the 0.8-MW Amlan hydro power plant in Negros Oriental.
Ayala Corp., which was founded in 1834 and incorporated in 1968, posted a 37% increase in profits to P11.2 billion last year.
Shares in Ayala Corp., which is valued by the market at P189.93 billion, closed P1.80 lower at P390.20 each on Wednesday. -- Neil Jerome C. Morales
"This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies," the statement quoted Fernando Zobel de Ayala, president and chief operating officer of Ayala Corp., as saying.
"This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements," he added.
John Eric T. Francia, managing director and corporate strategy and development head of Ayala Corp., said via e-mail on Wednesday that "The joint venture with Sta. Clara Power will somehow serve as a platform for Michigan Power and Sta. Clara Power to jointly pursue mini hydropower projects in the Philippines."
The Energy department classifies as "mini hydropower" projects those with capacity below 100 MW.
Last month, the conglomerate announced its bid to build a portfolio of over 1,000 MW from both renewable and conventional energy sources. It acquired a 50% stake in NorthWind Power Development Corp. that owns and operates the 33-MW wind farm in Bangui Bay in Ilocos Norte for P500 million. In November last year, Ayala infused P112.5 million into Michigan Power, which had entered into a joint venture with Diamond Generating Asia, Ltd. -- a subsidiary of Mitsubishi Corp. -- to study the viability of solar power projects in the country.
In the disclosure, Ayala Corp. said the run-of-the-river hydroelectric power plant operation involves using river water to turn kinetic energy into electricity, then returning the same unpolluted water back into the river.
Hence, the conglomerate said, the project does not generate harmful emissions, making use of "free," "green" kinetic energy as its fuel.
"Sta Clara Power is one of the few companies with the expertise and focus on run-of-the-river hydropower," Mr. Francia noted.
"Its mother company is one of the few construction companies in the country experienced in building hydro power infrastructure," he said, adding that Michigan Power will be the vehicle for the hydropower ventures.
Sta. Clara Power is majority-owned by Sta. Clara International Corp., a construction company with local and overseas projects. The mother firm, which started operations in 1976 as Sta. Clara Trading and Construction Co. before being incorporated as Sta. Clara International in 1990, also has branches in the United Arab Emirates, Oman and Qatar. Sta. Clara Power’s current projects include the 1.2-MW Loboc hydro power facility in Bohol and the 0.8-MW Amlan hydro power plant in Negros Oriental.
Ayala Corp., which was founded in 1834 and incorporated in 1968, posted a 37% increase in profits to P11.2 billion last year.
Shares in Ayala Corp., which is valued by the market at P189.93 billion, closed P1.80 lower at P390.20 each on Wednesday. -- Neil Jerome C. Morales
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