Aboitiz Power to build P15-billion power facility in Davao City

DAVAO CITY, Philippines  – The Aboitiz Power Corp. is set to put up a P15-billion 200-megawatt circulating fluidized-bed coal power plant in Davao City in an effort to address the fast-deteriorating power supply situation in the south.

Aboitiz Power officials, led by its president and chief operating officer Erramon Aboitiz, have been going the rounds meeting with local officials, business groups and the media here, explaining the current power situation in Mindanao and at the same time hoping that the establishment of the proposed power plant in Davao City would be approved by those concerned.

“Mindanao will be facing a continuing and debilitating power crisis unless new power plants are built to cover the shortfall,” Aboitiz said referring to the need to put up a coal power plant in Davao City.

At present, power outages of up to 12 hours are experienced by most parts of Mindanao and a shortfall of 484 MW is expected to be reached between the supply and demand of power in the south by 2014.

“The shortfall is staggering, as based on present demand, this is equivalent to depriving power supply completely to five major cities in Mindanao — Davao, General Santos, Cagayan de Oro, Butuan and Zamboanga,” Aboitiz said.

Aboitiz further stressed that their company wants to be part of the solution to the Mindanao power crisis by building the proposed coal power plant in the city.

He said the new power plant will be operational by 2014 if the project is started soon. “Time is of the essence. Aboitiz Power is prepared to take the risk and build this plant without bilateral contracts with wholesale buyers of electricity,” he added.

He said it takes 40 months to build and complete the coal power project outside of the time required to accomplish the permitting and licensing requirements.

Aboitiz said the new investment, which is also expected to generate at least 200 new jobs, will give Davao City economic and social benefits that are tremendous and far-reaching, including the fact that a P0.01/kwh share of the total electricity sales will be going to the city.