Thursday, December 21, 2017

SN Aboitiz investing $1.75 B for 500MW addition to capacity



Published December 20, 2017, 10:00 PM By Myrna M. Velasco

SN Aboitiz Power, Inc. (SNAP) is programming US$1.75 billion worth of investments over a decade stretch on to its targeted capacity addition of 500 megawatts until year 2027.
According to SNAP President and Chief Executive Officer Joseph S. Yu, that capacity ramping up will be concretized on amalgam of greenfield developments and prospective acquisitions.
“It will be a combination of greenfields, maybe some privatization and if there are offers, we may be keen on buying something,” he said.
Any forthcoming divestment of the Power Sector Assets and Liabilities Management Corporation (PSALM) would come as an appealing prospect for the company, primarily those on the privatization of the Casecnan, Agus and Caliraya-Botocan-Kalayaan (CBK) hydropower facilities.
For the company’s preliminary interest on the Agus hydropower complex’s privatization, Yu asserted that “it has to be under the right conditions, SNAP is strongest when we are able to use our ability to resurrect plants then operate them, maintain them and operate them commercially.”
The biggest on SNAP’s blueprint of projects would be the 390MW Alimit hydroelectric power project in Ifugao province, that will likely command massive investments of $1.2 billion to $1.3 billion.
That will be a two-phased development comprising of the 120MW Alimit and 20MW Olilicon; to be integrated eventually with a 250MW pumped storage facility.
SNAP is targeting to secure Board approval for the project middle of next year, so it can get the plant to commercial operations phase by year 2023.
“We’re trying to accelerate the business case development for Alimit – that means getting the permitting done quickly and getting the techno-financial analysis done in parallel,” he said.
The company is currently in the process of sorting out the socio-political acceptability of the project, primarily with the indigenous peoples organizations (IPOs) as well as the host municipalities and up to the host province of Ifugao.
“We continue to make progress on our quest to gain socio-political acceptability, we’re still working with four IPOs. In our consultations and in the voting, we have quite a bit of support from them, so we are now in the process of negotiating our memorandums of agreement for our FPICs (free, prior and informed consents) MOAs with the four IPOs,” he narrated.
After that two-level permitting process with the IPs and the LGUs, the next hurdle for SNAP will be its environmental compliance certificate (ECC) to be secured from the Department of Environment and Natural Resources.
“Once we get the three pieces, that’s more or less – that’s the three big building blocks into getting there (project implementation).  Parallel to that, we also need to look at the technical and financial viability of the project,” Yu stressed.

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