Aboitiz-Meralco joint venture still seeking funds

Business World Online
Posted on October 14, 2011 06:05:11 PM
BY EMILIA NARNI J. DAVID, Reporter


ABOITIZ POWER Corp. and Meralco PowerGen Corp. remain in talks with lenders for a planned $1.2-billion, 600-megawatt (MW) coal-fired power plant in Subic, an official told reporters Friday.
"We are not near the signing for financing for the Subic power plant and we are still talking with creditors and other institutions," Aboitiz Power Chief Executive Erramon I. Aboitiz told reporters in a chance interview.


He added financing for the power plant will be a mix of equity and project financing.


The power plant, which will consist of two 300-MW units, is expected be finished by 2014.


Earlier, five banks, Bank of the Philippine Islands, Banco de Oro Unibank, Inc., First Metro Investment Corp., Philippine National Bank, and Rizal Commercial Banking Corp. had expressed interest in financing the project.


Mr. Aboitiz said the joint venture has yet to bid out the engineering, procurement and construction contract for the plant.


In a related development, Mr. Aboitiz said Aboitiz Power has similarly not finished securing financing for the planned expansion of the Pagbilao coal-fired power plant.


"There are still issues to go through with the Pagbilao expansion and we have not yet talked with any banks for financing," said Mr. Aboitiz.


Aboitiz Power won the contract for the Pagbilao plant in 2009. It was declared the highest bidder with an offer of $691 million for the power plant.


Aboitiz Power’s consolidated net income fell 17% to P10.6 billion in the first half from P12.7 billion.


Its core net income fell 23% to P9.9 billion.


Shares of Aboitiz Power closed at P29.70 on Friday, up 0.678% from its previous close of P29.50 a piece.