Aboitiz Group remains keen on assets of Napocor

By Donnabelle L. Gatdula (The Philippine Star) Updated November 03, 2011 12:00 AM


MANILA, Philippines - The Aboitiz Group remains keen on bidding for the assets of the National Power Corp. (Napocor) despite the continued delay in the government’s privatization schedule.


SN Aboitiz Power Corp. (SNAP) chief executive Emmanuel Rubio said the group is still eyeing the remaining hydroelectric power plants of Napocor.


“We’re looking at all potential assets for privatization. Again, at the end of the day, it has to fit our portfolio. We’re looking at Caliraya-Botocan-Kalayaan (CBK) and Casecnan (hydropower plants). That announcement has not changed, we’ve always said that. It’s just that the government keeps on pushing back the dates of privatization. There’s still more than 1,000-megawatts to be privatized in terms of hydro and we’re looking forward to participate,” Rubio said.


He said they are also looking at bidding for the Agus hydropower plants but would likely focus first on CBK and Casecnan.


“At the end of the day, if there’s an opportunity, we will. But we’ll focus on CBK and Casecnan first and then Agus,: he said.


Earlier, Aboitiz Power Corp., the power generation arm of the Aboitiz Group, said they intend to bid for Napocor assets and contracts especially the hydropower plants in Mindanao and geothermal power plants in Leyte.


“Participating in the privatization of targeted Napocor assets that the Power Sector Assets and Liabilities Management Corp. (PSALM) bids out is something we will continue to do,” APC president Erramon Aboitiz said.


He said they would also participate in bidding for some distribution assets.


“We will also keep a watchful eye for acquisition opportunities in both the generation and distribution sectors, like our recent agreement with our partner Pacific Hydro for APC to assume full ownership and contract of Luzon Hydro’s 70-megawatt (MW) Bakun plant,” he said.


Late last year, APC said that it will likely spend about $2.8 billion should it decide to put up 1,400 MW of new capacities into the system.


“We still have plenty of room to expand. We still have more than 1,000 MW in Luzon, and then nationwide around 1,400 MW. And also, in Mindanao, our capacity there is very small at this point,” Aboitiz said.


As a rule of thumb, a company needs to spend between $1.5 million to $2 million per MW to put up a power facility.


The Aboitiz group’s market share is estimated at 15 percent in Luzon, seven percent in the Visayas, 15 percent in Mindanao and 14 percent for the national grid.


The Aboitiz Group gained competitive edge in the three grids with its acquisition of the 747-MW Tiwi-Makban geothermal plants, 360-MW Magat and 175-MW Ambuklao-Binga hydro plants, 100-MW Power Barge 117 and 100-MW PB 118 and the administration of Napocor contract in the 764-MW Pagbilao coal-fired power plant.