AES looks at expanding Masinloc plant capacity

Business Mirror
THURSDAY, 29 SEPTEMBER 2011 20:06 PAUL ANTHONY A. ISLA / REPORTER


AES Philippines, the local unit of US-based AES Corp., is looking at initially adding 300 megawatts (MW) to the existing 600-MW capacity of Masinloc coal-fired power plant in Zambales, said country chairman Andrew Horrocks on Thursday.


In an interview, Horrocks said the company is currently working at securing the required permits such as environmental compliance certificates.


“We believe we should have these permits by November. [The company does not foresee any problem as] we have very good relations with our local community,” he pointed out.


Horrocks added that start of constructions works will depend on the negotiations with contractors as well as the financial closure, even if the permits are issued next month.


The company is scouting for either local or international financial institutions to help finance the said expansion project.


Horrocks said the amount will depend on the company’s negotiations with the banks. “But for the first additional 300MW, [construction of] the project is estimated to cost roughly $500 million.”


He added that: “We’re actually planning to expand by another 600MW. But our view is we would have 300MW toward the end of 2015, if everything comes together. If it’s feasible, we’ll add another 300MW by 2018. It all depends on having the right contracts,” Horrocks said.


He also noted the company is open to investing in the country “for as long as it is profitable and fit within the business program in the country.”


In October last year, AES said it will invest around $800 million to expand the Masinloc coal-fired power plant.


AES president and chief executive Paul Hanrahan then met with President Aquino and Almendras discussed the plan to double the size of the Masinloc facility.


“Our Masinloc facility was built in a way that included much of the critical infrastructure for the expansion unit, allowing us to provide one of the lowest cost alternatives for capacity expansion,” he said.


In April 2008, AES took over the operations of the Masinloc plant for $930 million.