Aboitiz Power, TeaM Energy allot $1B for Pagbilao plant expansion

MANILA, Philippines - Aboitiz Power Corp. and TeaM Energy Corp. are investing close to $1 billion for the expansion of their existing coal-fired power plant in Quezon province by more than half of its existing capacity.

AboitizPower chief executive officer Erramon I. Aboitiz, during yesterday’s project launch said the two firms are pouring in a combined $976 million for the construction of the third unit of the Pagbilao power facility.

The new coal-fired power plant will have 420 megawatts (MW) of generating capacity and is expected to start injecting power to the grid by the second half of 2017.

“The total project cost of $976 million is already fully financed. We began in 2011 and invested six years to realize this project. A testament that power development is truly a patient and long-term endeavor,” Aboitiz said.

The project is being undertaken by Pagbilao Energy Corp. (PEC), a joint venture between TPEC Holdings Corp. and Therma Power Inc.— wholly owned subsidiaries of TeaM Energy and the Aboitiz Group, respectively.

PEC has tapped Mitsubishi Hitachi Power Systems Ltd. and Daelim Industrial Co., Ltd. as the project’s engineering, procurement and construction (EPC) contractors.

AboitizPower serves as the independent power producer administrator (IPPA) of the 735-MW Pagbilao coal-fired power plant while TeaM Energy operates the facility.

The coal-fired power facility has already been approved by the Quezon provincial government, the local government of Pagbilao, and by the barangay government unit, through three separate endorsements.

“This partnership between TeaM Energy and AboitizPower is a response to the call of the administration of President Aquino for private sector support in boosting the country’s energy security. As government has made great strides in moving the economy forward, we foresee significant growth in energy demand in the coming years,” TeaM Energy president and chief executive officer Federico E. Puno said.