In a disclosure to the Philippine Stock Exchange, AEVI said Hedcor Inc., Hydro-Electric Development Corp. (HDC) and Northern Mini Hydro Corp. (NMHC) will merge into a single operating corporation under Hedcor.
The move will simplify and streamline business operations, optimize the use of resources and position Hedcor for growth in an increasingly competitive energy environment.
AEVI said the move will allow it to aggressively pursue opportunities from the privatization of the National Power Corp.’s hydropower assets as well as to develop new power projects.
Hedcor said it will have control over generating assets and interests worth P3.3 billion upon completion of the consolidation. Last year, the total revenues of the consolidated corporations amounted to P1.2 billion.
These assets include 19 hydropower plants with a total installed capacity of 113 megawatts. The plants supply clean energy to customers in Benguet, Ilocos Sur, Pampanga and Davao.
Also forming part of these assets are the four Talomo plants that were acquired and turned over to AEVI from the Power Sector Assets and Liabilities Management Corp. in January 2005.
HDC and NHMC will continue to exist as holding companies whose main assets will be their shares in Hedcor.
Upon consolidation, Hedcor will have a total manpower count of 253 employees.
AEVI will build three new plants in the Visayas-Mindanao area estimated to cost between $300 million and $500 million. Among these include a 200-megawatt coal-fired plant in Cebu and two hydro power plants in Davao.
Funding may come from new borrowings or proceeds from the issuance of treasury shares.
The two new plants to be set up in Davao will have a combined capacity of 76 megawatts.
Construction of the first plant, which has a capacity of 46 megawatts, will begin early next year. For the Cebu coal power plant, AEVI has invited Mirant Phils. Corp. and Korean Electric Philippines Co. (Kepco) as partners.
The plant is expected to be operational by 2008.
AEVI, through its subsidiary Aboitiz Power Corp.(APC), operates 16 power plants which have a combined capacity of 111 megawatts.
Most of these plants are hydropower plants.
AEVI is the publicly-listed holding and investment management company of the Aboitiz Group.