Aboitiz Power unit hikes capital

MANILA, Philippines - AP Renewables (APR), a wholly-owned unit of Aboitiz Power Corp., is raising its authorized capital stock to P1.5 billion from only P20,000.

Documents filed with the Securities and Exchange Commission show that P1.2 billion out of the total increase in capitalization has been subscribed, and P570 million paid for, by Philippine Hydropower Corp.

APR has acquired the 289-megawatt Tiwi plant in Albay and the 458-MW Makiling-Banahaw complex in Laguna from the Power Sector Assets and Liabilities Management Corp. (PSALM) for $446.9 million with a downpayment of 40 percent or P8.2 billion.

The 60 percent balance is payable over a period of seven years in 14 equal semi-annual installments.

APR recent secured the approval of the Board of Investments for its two geothermal power generation projects that have a combined capacity of 747 MW, entitling the company a pioneer status and tax holiday of six years.

The Tiwi-Makban facilities are Aboitiz Power’s first geothermal power assets, as well as its first baseload power facility, in Luzon. 

With Tiwi-Makban, Aboitiz Power’s investments in generation facilities now have a total capacity of 1,672MW, expanding its attributable generating capacity by 80 percent to reach 1,040MW, with 77 percent powered by renewable sources of energy. 

Estimated rehabilitation cost of the two facilities was placed at $150 million over a two-year period.

The bid for both power facilities covered their generating assets, which were offered on an ”as is, where is” basis, structures and improvements, spare parts, and general plant equipment. It also includes the steam field facilities and the Geothermal Resources Sales Contract between PSALM and the Philippine Geothermal, Inc. (now Chevron Geothermal Philippines Holdings Inc.), the steam supplier for the two facilities.

Also included in the purchase of the Tiwi-Makban complex are more than 400 MW of power supply contracts, thus providing Aboitiz Power a ready market for the electricity that these facilities will generate.    — Zinnia Dela Peña