Wednesday, December 13, 2017

Ayala, Aboitiz tie up for coal plant in Bataan



By Lenie Lectura-

THE second unit of GNPower Dinginin Ltd. Co.’s (GNPD) two times 668-megawatt (MW) coal-power project in Bataan has reached financial close.
GNPower Dinginin is composed of Therma Power Inc. (TPI), a wholly owned subsidiary of Aboitiz Power Corp.; AC Energy Holdings Inc., the Ayala Group’s business arm in the energy sector; and Power Partners Ltd. Co., a partner of AC Energy.
“GNPD achieved financial close for the project financing of the second unit of its two times 668-MW super-critical coal-fired power plant in Dinginin, Bataan,” Ayala Corp. and AboitizPower said separately.
AC Energy and TPI each have approximately 50-percent beneficial economic interest in the GNPD project.
The estimated project cost of the GNPD project is $1.7 billion, with the debt component to be provided by Philippine banks. The companies did not identify the banks.
The GNPD project, the proponents said, will support the increasing electricity demand of Luzon and the Visayas. Construction of the first unit is underway and is targetted for commercial operations by 2019. The second unit is scheduled for completion by 2020.
GNPD also signed the amended engineering, design, procurement and construction contracts with Shanghai Electric Power Construction Co. Ltd. and Power Construction Corp. of China on December 5.
The secured financing for the GNPD Unit 2 brings AC Energy’s attributable capacity to over 1,600 MW, moving closer to attain its 2020 goal of reaching 2,000-MW attributable capacity of power plants that are operational or under construction.
“GNPD’s contribution not only brings us closer to our 2020 target capacity but also addresses supply requirements in the 2020s, amid medium-term supply uncertainties in the power sector,” AC Energy President and CEO Eric Francia said. These uncertainties include the delays faced by other major power plants as well as the future of Malampaya and LNG.
AC Energy is one of the fastest-growing energy companies in the Philippines. The company started in 2011, when it invested in 80 MW of attributable capacity. The company’s capacity has grown 20 times over the last six years.
Last year, AC Energy began to expand regionally with its first two investments in Indonesia—Sidrap Wind and Salak-Darajat Geothermal plants.
The company expects to make investments in Vietnam in 2018 to further expand its geographic footprint in Southeast Asia.

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