Aboitiz allots $680 M for expansion

MANILA, Philippines - Aboitiz Power Corp., the power generation arm of the Aboitiz conglomerate, is investing about $680 million to expand the capacity of two coal-fired power projects in Visayas and Mindanao currently under development.

In an interview, AboitizPower president and chief executive officer Erramon I. Aboitiz said the company is expanding its coal projects in Cebu and Davao by 170 megawatts (MW) each.

He said the company will likely spend $340 million for the construction of new units for each facility, bringing the Cebu and Davao plants’ gross capacities to 510 MW and 470 MW, respectively, after the expansion.

 “We are seeing growth coming in and we are anticipating that. So we really want to ensure all of the costumers in these two grids (Visayas and Mindanao) that there will be quality power. We feel that the opportunity of expanding it is best now while we are still building new capacity in Cebu and in Davao and while we still have our contractors there,” Aboitiz said.

He said the expanded units of both projects would be operational by 2018.

The company’s initial 300-MW coal fired plant in Davao is set to be fully operational by early next year while the 340-MW Cebu facility is scheduled by 2018.

 “We expect to give a notice to proceed (for the additional units) by March of next year. But that’s really more of a formality, because when the board approves, it’s really a go,” Aboitiz said.

Aboitiz Equity Ventures (AEV) the holding firm for the various businesses of the Aboitiz Group, celebrated its 20th listing anniversary with a bell ringing ceremony at the Philippine Stock Exchange yesterday.  AEV listed its shares at the PSE on Nov.16, 1994.

Aside from power, AEV is also into the banking, real estate and food manufacturing.