Aboitiz, Marubeni ink $700M deal
JOINT VENTURE Abotiz Power Corp. and Japanese firm Marubeni Corp. have signed an MOU for a proposed 400-megawatt coal-fired power plant in Quezon province, which is expected to be completed by 2015.
Aboitiz Power Corp. and Marubeni Corp. of Japan are investing as much as $700 million (more than P30 billion) to jointly develop, build and operate a 400-megawatt coal-fired power plant in Quezon.
In a disclosure to the Philippine Stock Exchange, APC said it signed a memorandum of understanding with Marubeni for the proposed power plant, which will be constructed within the premises of the existing 700-MW Pagbilao coal facility in Quezon.
The construction of the coal plant, which is seen to add the much-needed capacity for the Luzon grid, is expected to be completed by 2015.
The agreement was signed by APC president and CEO Erramon I. Aboitiz and Marubeni executive managing director Shigeru Yamazoe during President Aquino’s visit to Japan. The terms and conditions of the joint investment will, however, be finalized in a definitive agreement to be agreed upon by the parties.
Separately, Energy Secretary Jose Rene D. Almendras told reporters Wednesday that while the parties have initially agreed to expand by 400 MW, there was talk of further increasing this to 600 MW.
Almendras also disclosed that the plans to expand the 1,200-MW Sual coal-fired power plant were being firmed up. San Miguel Corp., which has the IPP administration contract for Sual, has yet to confirm its plans as of press time.
Marubeni is part-owner of Team Energy, which owns and operates the Pagbilao and Sual power facilities under a build-and-operate contract with the state-run National Power Corp. (Napocor).
Therma Luzon Inc. (TLI), a wholly owned subsidiary of APC, is currently the IPP administrator of the existing Pagbilao power plant. As an IPPA, Therma Luzon has been tasked to handle the procurement of its fuel requirements as well as the sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the circulating fluidized bed system to produce electricity with considerably less adverse effects to the environment, according to APC.
