Aboitiz unit to spend P100B on power

MANILA, Philippines—Aboitiz Power Corp. has earmarked P100 billion over the next three years to finance coal-fired power projects in Subic and Davao, which would boost its generating capacity by at least 475 megawatts.

In a briefing on Tuesday, APC president and CEO Erramon I. Aboitiz said that for 2011 alone, the company expects to invest P42 billion.

This amount represents the investment required for all the projects that APC is involved in, whether it has complete ownership or a smaller equity stake.

The planned investments until 2013 are expected to shore up APC’s generating capacity to over 2,500 MW, from the current 2,050 MW.

The proposed Subic coal power project is being undertaken with Taiwan Cogen International Corp., through a special vehicle company called Redondo Peninsula Energy Inc.

APC is initially looking at a 300-MW facility, but Aboitiz said the company would likely expand the plant’s capacity to 600 MW.

The Davao coal facility, meanwhile, will be undertaken solely by APC, through a wholly owned subsidiary, Therma South.

APC plans to start construction of both facilities within the year.

According to Aboitiz, the company plans to tap P50 billion in project financing for its planned Subic and Davao coal facilities.

Of this amount, about two thirds will be used for the Subic project and the rest for the Davao coal facility, Aboitiz said.

“(Final investment decision) still depends on the study that is being done and what sort of transmission lines that have to be put in place,” Aboitiz added.