SN Power to hike RP investments

Norway-based SN Power  (Statkraft Norfund Power Invest AS), the company that bought two hydroplants in the country, announced they will invest more in the local power industry in the coming years.

Speaking before fellow Norway-based businessmen during yesterday’s Norway Investment held at the Peninsula Manila, SN Power vice president Erik Knive said they are interested in bidding for the Mindanao power plant in three years.

According to Knive, they would like to invest in the 1,000 megawatt power plant in Mindanao which will be available in 2010.

Knive said the exciting part starts in 2010 when the Mindanao plant can be sold.

He said SN Power is encouraged to increase their exposure in the country because the Philippines has the most deregulated power contract in the world.

SN Power has partnered with the Aboitiz family to form a joint venture company SN Aboitiz Power Hydro Inc. for the purchase of Mabuklao and Binga hydropowerplants on Nov. 28. The winning bid was $325 million.

The move has made SN Aboitiz Power the largest private hydropower player in the country.

The 75 mw Ambuklao plant and the 100-mw Binga plant, located in Northern Luzon, were built in 1956 and 1960, respectively, and are the oldest hydropower plants in the Philippines.

The Ambuklao plant has not been running since the mid 1990s when it was hit by an earthquake. The Binga plant is running, but is in need of major upgrades.

Rehabilitation of the plants will be started immediately, and Norwegian as well as Philippine hydropower and engineering expertise will be used. In three years time, the plants are expected to have an increased capacity of 20 percent to 30 percent.

This is the second auction where SN Power and partner, Aboitiz Power Corporation, secured hydropower assets through the government’s privatization process.

In December last year, the company won the 360-mw Magat hydropower plant.

SN Power was established in 2002 and is a Norwegian Limited Company owned 50/50 by Statkraft and Norfund. Statkraft is a Norwegian state-owned utility and is northern Europe’s largest generator of hydropower. Norfund is a leading Norwegian risk capital investor in emerging markets, funded by the Norwegian Government.

SN Power’s business objective is to become a leading hydropower company in emerging markets, contributing to economic growth and sustainable development. SN Power is active in Asia, Africa and Latin America. SN Power actively pursues certified emission reductions  in all of its hydropower projects worldwide.