Aboitiz to finish Ambuklao rehab by Q3

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THURSDAY, 19 MAY 2011 21:16 PAUL ANTHONY A. ISLA / REPORTER

LISTED AboitizPower Corp. expects the 75-megawatt (MW) Ambuklao hydropower plant in Benguet to be generating electricity by the third quarter of the year.

This is what Erramon Aboitiz, AboitizPower president and chief executive, revealed in a press interview, adding that the plant’s rehabilitation will be finished by the third quarter.

Apart from rehabilitating the Ambuklao plant, Aboitiz said its capacity has been increased to generate 105 MW of electricity.

Aboitiz said the first of three units are expected to come online by June and the other two by July and August.

Aboitiz further noted they are also rehabilitating the 100-MW Binga hydropower plant. He added that they plan to take one unit down every year for them not to lose their committed output levels, as well.

Upon completion of the rehabilitation, Aboitiz said the generation capacity of the Binga plant will increase to 120 MW.

The rehabilitation of the Ambuklao and Binga hydropower plants is being undertaken by AboitizPower and SN Power of Norway—its joint-venture partner in SN AboitizPower (Snap).

Emmanuel Rubio, Snap president, earlier said the expansion of the Binga and Ambuklao facilities will be funded through project financing.

“We have the same lenders for the Magat and Binga. And I think they’re happy with our performance and the industry, as well. They’re confident on how our economic managers are handling things,” Rubio said.

In September 2008 Snap-Benguet signed a $100-million loan agreement with the International Finance Corp. (IFC) to help boost electricity output in Benguet province, catalyze economic development and enable Snap-Benguet to install new turbines and generators at the Ambuklao and Binga hydro facilities.

In 2007 IFC announced that it lent Snap $105 million for the Magat hydroelectric power plant.

Snap acquired the Ambuklao-Binga hydropower plants through a bidding done by the Power Sector Assets and Liabilities Management Corp. after offering to buy the assets for $325 million.