Energy giant AES keen on Napocor power plants

Washington D – AES Corp. is still keen on participating in the privatization of the National Power Corp. (Napocor) generating assets, a ranking company official said.

In an interview during the World Forum on Energy Regulation here, AES executive vice president Robert F. Hemphill Jr. said the company has remained optimistic on the prospect of the Napocor privatization although they have not been successful in winning any of the assets sold.

"We have looked at the Philippines 20 years ago. And we continue to be interested. Our Singapore office is handling our investment in the Philippines," he said.

Hemphill admitted they are particularly eyeing the hydroelectric power plants of Napocor.

"We are generally interested in hydro assets," the AES official said. Hydropower accounts for 17 percent of AES’ total capacity.

The Power Sector Assets and Liabilities Management Corp. (PSALM) had earlier included AES in the list of interested parties that have signified keen intesest to join the bidding for the 360-megawatt (MW) Magat hydropower plant facility which will be placed on the auction block by November this year.

The Magat hydroelectric plant, located in Ramon, Isabela, is Asia’s biggest dam project which serves the primary functions of power generation and irrigation. It was built at a cost of $83.7 million.

But Hemphill said their continued interest in the country’s power sector would depend on the soundness of the regulatory policies and presence of demand.

"We will participate as long as the country’s regulatory policies remain sound. As long as there is a potential market for additional capacity, we will continue to explore opportunities in the Philippine power sector," he said.

Hemphill said AES has considered Asia, including the Philippines, as one of the company’s targeted areas for future investments.

"We have been exploring Asia. We have power plants in Vietnam, India, Sri Lanka and other Asian countries," he said.

AES is one of the world’s largest global companies with 2005 revenues of $11.1 billion. With operations in 26 countries on five continents, AES’ generation and distribution facilities have the capacity to serve 100 million people worldwide.