By Danessa Rivera (The
Philippine Star) | Updated June 17, 2016 - 12:00am
MANILA, Philippines - A unit of
Aboitiz Power Corp. has gained full control of a Cebu-based power generation
company to help the group inch closer to its 4,000 megawatt (MW) capacity
target in the next four years.
In a disclosure to the Philippine
Stock Exchange, AboitizPower said its wholly-owned subsidiary Therma Power Inc.
acquired El Paso Philippines Energy Co. Inc.’s 50 percent interest in East Asia
Utilities Corp. (EAUC).
The deal covered five million common
shares and 21,690 Series A redeemable preferred shares for a total
consideration of $11 million or P509.41 million.
With the acquisition, the group has
gained full ownership of EAUC, the operator of the 50-MW oil-fired power plant
in Mactan Island in Cebu.
AboitizPower first purchased the 50
percent ownership interest of El Paso Philippines in EAUC on April 20, 2007.
The company said the deal is in line
with its target to increase its attributable net sellable
AboitizPower president and COO
Antonio R. Moraza said it will also allow the group to “better participate in
contracting of energy and ancillary reserves.”
“Reliable peaking power plants are
part of our bigger objective of creating a right-mix of power supply for our
customers,” he said.
Ancillary services are necessary to
support the transmission of capacity and energy from resources to loads while
maintaining reliable operation of the transmission system in accordance with
good utility practice and the grid code.
EAUC operates a Bunker C-fired power
plant with an installed capacity of 50 MW in Barangay Ibo, Lapu-Lapu City in
Cebu. The power plant has the capability of providing critical peaking and
ancillary services to the Visayas grid.
AboitizPower has an existing
portfolio of geothermal, hydropower, coal, oil and solar power plants.
Currently, it is working on the
68-MW Manolo Fortich hydropower plant, 340-MW coal-fired power plant in Cebu
under Therma Visayas Inc. and the 420-MW coal-fired Pagbilao III.
Along with other partners,
AboitizPower is also in pre-construction works in for the 600-MW Redondo
Peninsula Energy (RP Energy) project in Subic, Zambales.
RP Energy is a consortium composed
of Meralco PowerGen Corp., AboitizPower and Taiwan Cogeneration International
Corp.
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