Aboitiz Power to invest P85B in energy projects

Funding expansion of existing facilities, hydro plants

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Aboitiz Power Corp. is embarking on P85 billion worth of power-generation facilities that will add about 1,500 megawatts to the Luzon and Mindanao grids in four years’ time.

On the sidelines of the Philippine Economic Briefing Wednesday, APC president Erramon I. Aboitiz explained that the amount would be used for the planned 400-MW expansion of the existing Pagbilao coal-fed power plant in Quezon, the 300-MW coal-fired facility in Davao, the 600-MW coal-fed plant in Subic and several hydropower projects across the country.

According to Aboitiz, APC and its joint-venture partner Team Energy were targeting to start within the year the $800-million expansion of the existing 700-MW Pagbilao power plant and have the facility operating commercially by 2016.

The construction of the P25-billion, 300-MW coal-fed plant in Davao by APC’s wholly owned subsidiary Therma South Inc. is expected to be completed by 2015. Specifically, the first phase of 150 MW is expected to be running within the last quarter of 2014, while the last phase of another 150 MW by the first quarter of 2015.

The Subic coal-fired plant, which is being jointly undertaken by APC, Manila Electric Co. and Taiwan Cogeneration, has yet to start construction given a few hurdles the project is facing, but is still being targeted for completion by 2016.

Aboitiz, however, did not disclose much information about the company’s hydropower projects, except to say that they were looking at about four projects that could add more than 100 MW.

According to Aboitiz, the country’s business climate was currently ideal for investments and its strong fundamentals were making investors take a second look at the Philippines.

Investors, he explained, previously found it difficult to invest in long-term, long-payback projects, but because of the country’s fiscal position, investors were finding it more attractive to invest in long-term projects.

Aboitiz added that Mindanao, in particular, was a good business frontier with rich agricultural resources that needed to be unlocked. One of the biggest roadblocks, however, was the lack of electricity and other critical infrastructure on the island.

Mindanao has been suffering from rotating power outages due to its heavy reliance on hydroelectricity, mainly from the 900-MW Agus and Pulangi power complexes, which are owned and operated by the state-run National Power Corp.

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  • yonoh

    aboitiz, malakas yan kay pinoy…dati nong panahon ni cory yang ang kumita ng malaki dahil sa brown out…nagbebenta ng mga generator……………….. kaya di naayos ang brown out…noon ngayon big time na ……………………di na generator kundi …………………..nakakalason usok…………mula sa uling……sisirain lahat ang kalikasan at yaman ng dagat…………….basta kumita lang………… hipuin sana kayo ng dyos………………

  • http://pulse.yahoo.com/_DKHID3EEHTG27U5JXRIIUVKXQA Jose Rizal

    “Aboitiz”!  They’re here in the Philippines for a long time…just like the Lopezes, the Ayalas, the Sorianos…and many others…they, somehow, dictates the politics for “self-preservation”…they are the ones who decides the tempo of Philippine politics…Is it good/bad? You decide!
    Hahahahahahahaha!

  • http://pulse.yahoo.com/_V6JTYBZXUSXIDCD67ACZK7NUKM Joseph

    Although the projects are big, I am disappointed that all the coal plants are based on the old technology and not clean coal like the coal power plants in the Visayas set up by the Metrobank Group.

  • nazar_agawin

    Aboitiz Power has been ranked 3rd among the 16 Philippine companies nominated under the Most Convincing and Coherent Strategy in 2010. With this distinction it comes as no surprise that the timing and quality (in terms of capacity and strategic location) of their investment directions are always on the right path. In fact they even have initiatives such as Business Interruption Insurance and multi-callable option that can protect the cash position of the company. With experience in the power industry dating back 1918 and a strong management team, Aboitiz is considered as the benchmark in the power industry.  

    Most of their new investments are in coal fired generating plants. In spite of being branded as “clean coal technology” or CCT, it is not entirely clean. All those toxic gases can be captured, easy does it. The headache, though, is the carbon dioxide, which has to be buried as part of the package as “clean coal” (and let somebody else worry wit it later).  My challenge to Aboitiz is to invest in a more environmentally acceptable technology such as LNG. (As for renewable, it may have to take a back seat until the regulatory policy would stabilize. Yesterday, it was published that DOE adopted a policy in awarding service contracts on RE on a “first-come-first-served” basis. Though this policy favors deep-pocket power companies such as Aboitiz, they’re not stupid as to invest in 100% equity. That is why Aboitiz has only a few words to say about the 100MW hydro projects.)  I’m sure that with a cohesive long term strategy Aboitiz has considered LNG as a viable technology.

    nazar_agawin@yahoo.com
    power consultant

    • WeAry_Bat

       You don’t read anywhere as to how they will deal with coal ash…Because it is just dumped.

      Goodbye Davao.  I always knew your mayors were only good in publicity but not what was truly right.

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