Aboitiz Power inks supply deal

MANILA, Philippines - A subsidiary of listed Aboitiz Power Corp. (AP) has signed a deal to supply electricity to an Agusan-based power distributor.

The new agreement will ensure the security of the power supply in Agusan del Sur amid continuous growth in demand, the company said.

Under the deal, Therma South Inc. (TSI) will supply 10 megawatts (MW) of capacity to Agusan del Sur Electric Cooperative (Aselco).

Therma South is spending $546 million for a 300-MW coal-fired power plant in Southern Mindanao. Construction will be completed in June 2015.

“With distribution utilities Davao Light and Cotabato Light already signing for a combined 105 MW, there are around 185 MW of capacity left for other Mindanao distribution utilities and electric cooperatives to sign up for,” Therma South said.

“Our franchise area is experiencing very encouraging economic growth. Our role as the electric cooperative is to ensure that this growth is supported by reliable and affordable power,” said Aselco board president Joel Jumonong.

Aselco general manager Emmanuel Galarse said the deal ensures the cooperative will have power not only at present but also for its future needs.

Aselco has an estimated daily peak demand of 24 MW as it serves Bayugan City and 13 other municipalities in Agusan del Sur.

The firm has been awarded as one of the country’s best operating electric cooperatives by the National Electrification Administration in April.

“We have the advantage of having already started our construction and we will ensure we will build a world-class power plant that the people of Mindanao will be proud of,” said Therma South chief operating officer Benjamin Cariaso Jr.

The power supply deal will be submitted for approval to the Energy Regulatory Commission.