MANILA, Philippines - Aboitiz Power Corp. (APC) plans to spend $1.5 billion for the expansion of its Subic and Davao coal-fired facilities, over the next three years, the company’s top executive said.
APC president and CEO Erramon Aboitiz said they intend to hike the capacities of these coal-fired power plants. The Subic project, originally planned at 300 megawatts (MW), would be increased to 600 MW, while the proposed Davao coal-fired facility, on the other hand, would be raised to 300 MW.
According to Aboitiz, they are optimistic there would be higher demand for power in the next few years as the domestic economy continuously grows.
He said the two power plants are expected to come online between 2012 to 2014 in time for the projected increase in demand in 2014.
“Businesses are in good position, distribution business continues to grow. Demand for electricity is still going up, the local economy and domestic consumption are quite good, positive there will be growth in consumption,” he said.
APC, is scheduled to be bidding out the EPC (engineering, procurement and construction) contract for the Subic power plant.
APC, through its joint venture company with Taiwan Cogeneration International Corp. called Redondo Peninsula Energy Inc. (RP Energy), will put up a 600-MW coal plant at the Subic Freeport. The plant is expected to be completed by 2013.
The power firm recorded a consolidated net income of close to P6 billion for the quarter ending Sept. 30, 2010, a 165- percent expansion from the same period last year.
On a year-to-date basis, APC’s bottom line performance recorded a 388-percent increase, from almost P4 billion to P19 billion, translating to an earnings per share of P2.50.