Aboitiz Equity taps BPI for P2.2-B loan

Aboitiz Equity Ventures Inc. (AEV) has tapped a P2.2-billion loan facility with the Bank of the Philippine Islands to finance the expansion of its power generation and banking units as well as new investments, according to informed sources.

AEV needs between P5 billion to P6 billion for the construction of three new plants over the next two or three years. The plants, located in the Visayas-Mindanao area, are estimated to cost between $300 million and $500 million.

Among these new plants include a 200-megawatt (MW) coal-fired plant in Cebu and two hydropower plants in Davao. The two new Davao plants will have a combined capacity of 76 MW. Construction of the first plant is expected to be completed by 2008 in anticipation of a power shortage in the Visayas and Mindanao.

For the Cebu coal power plant, AEV has invited Mirant Phils. Corp. and Korean Electric Philippines Co. (Kepco) as partners. The plant is expected to be operational by 2008.

AEV earlier teamed up with Norwegian company SN Power Invest AS to jointly bid for and develop Hydroelectric power projects in the Philippines. SN Power is focused on the development, investment and operation of hydroelectric projects in Asia, Africa and Latin America.

AEV’s subsidiary, Hedcor, owns the 3.5-MW Talomo plant in Davao, the first power plant to be privatized by the government. The partnership will allow the companies to share resources and bid for more than one of the assets being privatized by the National Power Corp.

AEV has signified interest to buy sub-transmission assets from state-owned National Transmission Corp.

Hedcor Inc. is the largest private mini-hydro developer in the Philippines with over 25 years of experience in the field and has control over P3.3 billion worth of hydropower generation assets.

AEV owns and operates power distribution utilities and generation facilities.