MANILA, Philippines - Power generation giant Aboitiz Power Corp. (APC) is looking at a P72-billion capital expenditure program over the next four to five years as it seeks to expand capacity with the construction and acquisition of power plants.
In a press briefing yesterday, APC president and CEO Erramon I. Aboitiz said they are eyeing an additional 500 -700 megawatts (MW) of both greenfield (power plants to be established) and brownfield (existing power plants) projects.
The company generation assets currently have a combined capacity of 1,745 MW.
Aboitiz said the five-year capex was slightly lower than the record P80-billion spending portfolio set last year.
The bulk of the spending package was intended for the acquisition of the $691-million, 700-MW Pagbilao coal-fired thermal power plant in Quezon and the 467-MW Tiwi-Makban geothermal power plant.
For 2010 alone, the energy unit of the Aboitiz Group of Companies has allotted P20 billion for capex.
“Most of the spending will be at the tail-end of existing capacities,” Aboitiz said.
He likewise revealed that the P20 billion capex would be divided between the power group (P17 billion), transportation group (P1.8 billion) and P200 million for its food segment.
To fund its five-year spending program, the Cebu-based conglomerate will turn to project financing, tapping the capital market to raise P10 billion, half in retail notes and the other in fixed rate notes.
APC is looking to put up two 150-MW coal-fired power plants in Mindanao, a coal plant in Subic, and several hydropower projects in Mindanao and Northern Luzon.
The company is also interested in assets to be privatized by the Power Sector Assets and Liabilities Management Corp. (Psalm), including coal-fired plants and renewable energy sources.