Aboitiz Power plans to spend P170B for generation projects

Business World Online

Posted on May 06, 2012 09:35:26 PM

DAVAO CITY -- Aboitiz Power Corp. plans to spend up to P170 billion in the next five years to rehabilitate old plants as well as establish new facilities across the country.

In a statement yesterday, the company said the planned expenditure will likely go to hydroelectric and clean coal projects to take advantage of a shortage in the market.


In Mindanao, P35 billion will be invested for an additional 354 megawatts (MW) that would come on stream by 2015, the company said. Part of this amount would be for the initial operation of the 300-MW, coal-fired power plant to be constructed in this city, while the remaining amount would be for small hydroelectric plants that would have a combined capacity of 54 MW.


The company said it has also started identifying some smaller hydroelectric plants that might be included in the investments portfolio some in the Davao region.


Earlier, Gregorio P. Jabonillo, vice-president of Hedcor, Inc., a subsidiary of Aboitiz Power, told BusinessWorld the company wants to put up smaller hydroelectric plants in Compostela Valley and Bukidnon.


Mr. Jabonillo said the company is still determining the capacities of the planned hydroelectric plants. The latest Aboitiz Power statement said it would “rehabilitate the existing plants to maximize capacity and improve reliability.”


Mindanao has been facing a power crunch again these past months as hydroelectric power plants run by the state-owned National Power Corp. saw their capacities slashed as preventive maintenance started two months ago.


Aboitiz Power recorded lower earnings of P16.5 billion in 2011 versus P19.1 billion two years ago.


This was reportedly a result of a 7% drop in the average selling price of electricity, as well as a decline in net power generation to 9,422 gigawatts per hour (GWH) from 9,762 GWH in 2010.


Aboitiz Power shares fell by 0.86% to P35.10 apiece on Friday. -- Carmelito Q. Francisco