AEV sets P58.4B capex for 2016

CEBU, Philippines - Aboitiz Equity Ventures is allocating up to P58.4 billion in capital expenditure this year, bulk of which will be spent on its power projects including the 340-megawatt coal-fired plant it is currently building in Toledo City, Cebu.

In a disclosure to the Philippine Stock Exchange yesterday, AEV said at least P52 billion is allotted for its power subsidiary, Aboitiz Power, to increase its total capacity to 4,000 MW by 2020.

In an interview early last month when Aboitiz Power inaugurated its 300-MW baseload plant in Davao City, Sebastian R. Lacson, head of the company's coal group, said the power firm is investing some P36 to P38 billion for the Toledo power plant.

The Toledo coal plant, which has two 170-MW units, is scheduled to be completed by late 2017.

This plant will improve the energy mix of the Visayas grid through dependable baseload power, securing the energy needs of the region.

The Toledo power plant is bigger than the one in Davao City, Lacson had said.

Aboitiz Power is also set to launch its first solar power project in San Carlos City, Negros Occidental within the first quarter this year.

The listed firm also identified roughly 200 MW of potential run of river power projects across the country in the next five years.

Shares of AEV and its unit, Aboitiz Power, closed at P57.80 and P42 per share, respectively, yesterday. — (FREEMAN)