Business World Online
Posted on February 13, 2013 10:34:28 PM
LISTED Aboitiz Power Corp. plans to spend around P85 billion in the next four years for its projects across the country, its top official said yesterday.
“We are going to invest around P85 billion for the building of new power plants across the Philippines in the next four years,” Aboitiz Power President and Chief Executive Officer Erramon I. Aboitiz told reporters on the sidelines of the Philippine Economic Briefing at Philippine International Convention Center in Pasay City.
Mr. Abotiz said the investment will be used for its equity share in Redondo Peninsula Energy, Inc. (RP Energy); expansion of the 700-megawatt (MW) coal-fired power plant in Pagbilao, Quezon; the 300-MW coal-fired power plant of its subsidiary in Davao; and some new hydropower projects.
“The P85 billion is a combination of our investments in RP Energy, the Pagbilao expansion, the Therma South, Inc. (TSI) coal plant in Mindanao, and some hydropower projects that we’re looking at. That all sums up to P85 billion,” he said.
Aboitiz Power holds a 25% stake in RP Energy which is the proponent of a 600-MW coal-fired power plant in Subic, Zambales. The facility is expected to add capacity to the grid by 2016. Other stakeholders are Manila Electric Co. and Taiwan Cogeneration Corp.
The company, through its subsidiary Therma Luzon, Inc., also operates the coal facility in Pagbilao, Quezon under an independent power producer administrator contract it secured from the Power Sector Assets and Liabilities Management Corp.
Mr. Aboitiz said that the company will expand the facility’s capacity by constructing another 400-MW unit.
“We hope to break ground this year, hopefully in the second half, and have that ready by 2016,” he said.
Meanwhile, TSI is building a 300-MW coal-fired power plant in Davao. The facility is expected to start commercial operations by 2015.
“We are investing in a 300-MW base load plant in Davao City to provide long-term solution to power shortage in Mindanao. This will also help drive economic growth in Mindanao,” Mr. Aboitiz said.
Mindanao has constantly reeled from power shortage, partly due to its over-reliance on hydro power plants that provide more than half of the entire island’s supply. The National Grid Corporation of the Philippines yesterday estimated Mindanao’s shortage at 253 MW, with peak demand of 1,168 MW outstripping a 915-MW capacity.
Mr. Aboitiz said the company is also looking at building three to four mini hydropower plants with aggregate capacity of around 100 MW.
“In the next three to four years, we’re looking at adding a little over 100 MW of mini hydro,” he said.
“We’re looking at here in Luzon, and also some more in Mindanao, but we don’t have a particular approved site at this point.”
Mr. Aboitiz said the company will finance the P85-billion investment through a combination of equity and loans.
“What we do in our projects is we get some project financing from banks -- normally, about 70% -- and then the balance is the equity that we put in as Aboitiz Power,” he explained.
“We’ll probably sign loan agreements for those this year, probably within the second and third quarters.”
Aboitiz Power, the power unit of the listed conglomerate Aboitiz Equity Ventures, Inc., engages in power generation and distribution.
Aboitiz Power grew its profit by 13.71% to P14.1 billion as of September last year from P12.4 billion in the same nine months in 2011.
Its shares shed 10 centavos yesterday or 0.26% to P37.75 apiece yesterday from P37.85 on Tuesday, while those of its parent gained 30 centavos or 0.53% to P57.30 each from P57. -- Claire-Ann Marie C. Feliciano source
Mr. Abotiz said the investment will be used for its equity share in Redondo Peninsula Energy, Inc. (RP Energy); expansion of the 700-megawatt (MW) coal-fired power plant in Pagbilao, Quezon; the 300-MW coal-fired power plant of its subsidiary in Davao; and some new hydropower projects.
“The P85 billion is a combination of our investments in RP Energy, the Pagbilao expansion, the Therma South, Inc. (TSI) coal plant in Mindanao, and some hydropower projects that we’re looking at. That all sums up to P85 billion,” he said.
Aboitiz Power holds a 25% stake in RP Energy which is the proponent of a 600-MW coal-fired power plant in Subic, Zambales. The facility is expected to add capacity to the grid by 2016. Other stakeholders are Manila Electric Co. and Taiwan Cogeneration Corp.
The company, through its subsidiary Therma Luzon, Inc., also operates the coal facility in Pagbilao, Quezon under an independent power producer administrator contract it secured from the Power Sector Assets and Liabilities Management Corp.
Mr. Aboitiz said that the company will expand the facility’s capacity by constructing another 400-MW unit.
“We hope to break ground this year, hopefully in the second half, and have that ready by 2016,” he said.
Meanwhile, TSI is building a 300-MW coal-fired power plant in Davao. The facility is expected to start commercial operations by 2015.
“We are investing in a 300-MW base load plant in Davao City to provide long-term solution to power shortage in Mindanao. This will also help drive economic growth in Mindanao,” Mr. Aboitiz said.
Mindanao has constantly reeled from power shortage, partly due to its over-reliance on hydro power plants that provide more than half of the entire island’s supply. The National Grid Corporation of the Philippines yesterday estimated Mindanao’s shortage at 253 MW, with peak demand of 1,168 MW outstripping a 915-MW capacity.
Mr. Aboitiz said the company is also looking at building three to four mini hydropower plants with aggregate capacity of around 100 MW.
“In the next three to four years, we’re looking at adding a little over 100 MW of mini hydro,” he said.
“We’re looking at here in Luzon, and also some more in Mindanao, but we don’t have a particular approved site at this point.”
Mr. Aboitiz said the company will finance the P85-billion investment through a combination of equity and loans.
“What we do in our projects is we get some project financing from banks -- normally, about 70% -- and then the balance is the equity that we put in as Aboitiz Power,” he explained.
“We’ll probably sign loan agreements for those this year, probably within the second and third quarters.”
Aboitiz Power, the power unit of the listed conglomerate Aboitiz Equity Ventures, Inc., engages in power generation and distribution.
Aboitiz Power grew its profit by 13.71% to P14.1 billion as of September last year from P12.4 billion in the same nine months in 2011.
Its shares shed 10 centavos yesterday or 0.26% to P37.75 apiece yesterday from P37.85 on Tuesday, while those of its parent gained 30 centavos or 0.53% to P57.30 each from P57. -- Claire-Ann Marie C. Feliciano source
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