US-based AES keen on $1-B expansion of Masinloc plant

MANILA, Philippines - US-based AES Corp. is keen on pushing through with the $1-billion expansion of its 600-megawatt (MW) Masinloc coal-fired power plant as it expects to conclude the bidding of the engineering, procurement and construction (EPC) contract in November, a top company official said.

On the sidelines of the Powertrends 2011 Conference, AES Philippines country manager Andrew Horrocks said they plan to double the capacity of Masinloc in the medium term.

The expansion project was a commitment made during the state visit of President Aquino in the US in October 2010.

Horrocks said they are still negotiating for an EPC contract for an initial 300 MW, which will be completed in 2015. The next phase would be another 300 MW seen to be completed in 2018.

But Horrocks pointed out that they would need to put up the first 300 MW and decide on the second phase if they would get enough buyers of the power output.

According to the AES official, they are also in the process of securing necessary permits for the initial phase of the expansion project.

“We are on expansion stage. We are not going through the process, getting ECC (environmental compliance certificate),” he said.

He said they expect to get the ECC permits within the next two months.

The AES executive said they do not expect any opposition on the project.

He said they may be tapping local and foreign financing institutions to fund the expansion project.

AES is a global company that provides affordable and sustainable energy in 29 countries worldwide through a 27,000-strong workforce.