Under the agreement, Aboitiz Power and TCIC will form a joint venture company to serve as the vehicle for the project.
AEVI said the plant would supply electricity to locators in the Subic Bay Metropolitan Authority (SBMA) area and other economic zones across the country.
“SBMA is expected to experience high growth in demand from new locators. The plant will also offer its power to utilities adjacent to SBMA,†said AEVI in a disclosure report to the Philippine Stock Exchange.
AEVI, the listed investment holding company of the Aboitiz family, has been aggressively expanding operations to further boost its profitability.
AEVI and SN Power, the second largest hydropower producer in Europe, won the bidding for the 360-megawatt Magat hydroelectric power plant in Ramona, Isabela in December last year with a bid of $530 million.
It is also joining the auction to supply power in Sibulan and Tamugan, both in Davao, which would require the construction of a combined 72 megawatt hydroplant – Sibulan (42 megawatts) and Tamugan (30 megawatts). About P8 billion to P9 billion will be needed for these two projects.
The group is also interested in bidding for the Ambuklao plant in Benguet which has been slated for auction by the government sometime this year. In addition, the group is also eyeing the Masinloc power plant.
AEVI recently raised P6.1 billion (approximately $124 million) from the sale of its treasury shares. The company sold its entire treasury shares holdings representing 742.51 million shares at P8.20 per share.
The group also hopes to raise funds from the equities market with the maiden offering of shares of Aboitiz Power Corp., which will become the holding company for its power generation and distribution assets upon completion of a corporate restructuring. The public offer has been reportedly moved to the third quarter of this year.