Ayala Corp shelves hydro power project

MANILA, Philippines - Ayala Corp. (AC), the country’s oldest conglomerate, has shelved its hydroelectric power project in Central Visayas pending the resolution of local issues.

But the company, which is diversifying into the energy business, is still holding on to the P1.3-billion project.

“It is still in the pipeline but we have put it on hold to address all concerns,” said John Eric Francia, managing director and head of corporate strategy of AC.

Last May, the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources slapped an indefinite suspension on the proposed P1.3- billion Cantakoy mini-hydro project at barangay Cabatuan in Danao town in Bohol.

The EMB said the project proponents “failed to comply with the terms and conditions of the Environmental Compliance Certificate.”

In February, Ayala-led Quadriver Energy Corp. broke ground for the 5.2-megawatt (MW) mini-hydro project along the Cantakoy River.

In April last year, AC Energy Holdings Inc. entered into a joint venture with Sta. Clara Power Corp. for the development of run-of-the-river hydroelectric power projects in the country.

AC Energy controls a 70-percent stake in the partnership after infusing P656 million, with the remaining 30 percent held by independent power producer Sta. Clara Power.

The two firms formed development companies Quadriver, Philnew Hydro Power Corp., Philnew River Hydro Corp. and Matic Hydro Corp.

AC Energy targets to be a major contributor in the conglomerate.

The goal of AC Energy to hit a generating capacity of 1,000-MW in the next five years will require as much as $2.5 billion in investments.

To date, major businesses in the Ayala group are property (Ayala Land Inc.), banking (Bank of the Philippine Islands), telecommunications (Globe Telecom Inc.) and utilities (Manila Water Co. Inc.).