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THURSDAY, 20 SEPTEMBER 2012 18:14 PAUL ANTHONY A. ISLA / REPORTER
DIVERSIFYING conglomerate Ayala Corp. (AC) continues to expand its power business portfolio, this by partnering with A Brown Co. Inc. (BRN) in building a 135-megawatt coal-fired power plant in Panay.
In a disclosure to the Philippine Stock Exchange, BRN said its subsidiaries Palm Consolidated Holdings Corp., Palm Concepcion Power Corp. and Panay Consolidated Land Holdings Corp. signed the P12.5-billion agreement with AC Energy Holdings Inc. (Acehi).
BRN said the new plant, which is targeted to operate in 2015, will utilize the latest in clean-coal technology. It is targeted to fill the anticipated tight power supply situation in Panay and the Visayas grids, as economic activity continues to expand in the area.
BRN chairman Walter W. Brown said the partnership clearly validates the quality and value of the projects that they have conceptualized, originated and nurtured.
He added that it also demonstrates the technical abilities, long-standing experience and capabilities of BRN and its management team to bring meaningful and value-added projects to the fore.
With the joint venture in place, Roel Castro, BRN vice president and Palm Concepcion Power president, said the plant is now on track to break ground within the last quarter of the year.
“BRN has done all the preliminary work and investments over the past two years, and the project is already in an advanced stage of predevelopment. The engineering plans are ready, and important regulatory approvals have been secured," he said.
Castro said the project and partnership is a welcome development as this will insure the availability of steady, reliable and cheaper power to fuel anticipated growth and development in key areas like Iloilo City, Bacolod City and Boracay.
Castro added that the company’s commitment to Panay is long-term, as they stand ready to build another 135-MW capacity if a need arises.
The project also marks another milestone for Acehi as it continues to expand its portfolio of businesses and pursues opportunities in power generation and infrastructure.
“We are pleased to be partnering with BRN, and hopefully with the combined expertise and experience of both companies, we can be a major player in the power generation sector in the years to come” John Eric Francia, AC managing director and Acehi chief executive, said.
He added that Acehi is actively investing in the power sector, and the Ayala Group would like to pursue opportunities with BRN as one of its partners.
Francia earlier said the company looking at building up its power portfolio through a mix of greenfield projects and also by bidding for the contracted capacities and/or assets of the government.
He said Ayala plans to build at least 1,000 megawatts of power-generation capacity in the next five years. This would entail $2.5 billion in investments.
Francia added that they have earmarked $500 million as equity for these planned projects. “The 1,000 MW is our benchmark. If we can exceed that, and if we are fortunate to land some interesting acquisitions, then we can exceed that. But if not, that can be a tall order if it’s all going to be greenfield projects,” he said. source
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