Aboitiz Power open to boosting Davao coal plant

Manila Standard Today
By Alena Mae S. Flores  Posted on September 17, 2012   12:01am

Aboitiz Power Corp. is open to expanding its 300-megawatt Davao coal-fired plant by another 300 MW if Mindanao needs the additional capacity, a company official said over the weekend.

Bobby Orig, first vice president for Mindanao affairs, told reporters the company hopes to complete the first 150-MW unit of the plant by the last quarter of 2014 and the other 150-MW unit by 2015.

Therma South Inc., a unit of Aboitiz Power, is building the P25-billion coal plant.

The plant, which will use the circulating fluidized-bed technology, is located in Barangay Binugao, Toril District, Davao City and Barangay Inayawan, Sta. Cruz, Davao del Sur.

“As of now, we’re not talking of expansion. The one we’re building is up to 300 MW but the place can be expanded to add another 300 MW,” Orig said.

“The area can accommodate an additional plant for expansion… but we’re not talking of expanding it yet as of now,” he said.

The official said the Aboitiz Group would evaluate Mindanao’s power supply situation before pursuing the expansion.

“It depends on the number of players that are coming in with us in Mindanao. But as of now, we’re the only one who has started building already, the rest are talking about plans,” he said.

Orig said Aboitiz Power had raised funding for the main coal-fired plant. He said Aboitiz Power decided to pursue the project on its own to avoid a delay.

The company is presently negotiating with electric cooperatives for supply contracts of the Davao coal plant.

“It’s going to be marketed, but we don’t foresee any problem marketing it because of the severe lack of power in Mindanao,” he said. Mindanao is experiencing of power shortages of as much as 200 MW.

Aboitiz Power has signed a $546-million contract with local and foreign groups to build the Davao coal power plant.

The contractors include Formosa Heavy Industries Corp. and a consortium composed of Black & Veatch and Leighton Contractors (Philippines) Inc.

Formosa Heavy Industries will design, supply and erect the power block equipment, while the Black & Veatch consortium will perform civil works as well as engineer, procure and build the balance of plant systems and facilities.   source