Aboitiz-led Toledo plant set to operate by Q1 2018

CEBU, Philippines – Aboitiz Power Corp. targets the commercial operations of its 340-megawatt coal-fired power plant in Toledo City, Cebu by the first quarter of 2018, a top official said.

COO and President Antonio Moraza said yesterday that the company will probably start the commissioning process of the plant by the first quarter of next year.

"We're on time," he told reporters at the sidelines of the 11th Aboitiz Future Leaders Business Summit held at the Marco Polo Plaza Cebu yesterday. 

Moraza noted that the Toledo plant is expected to supply power to the Visayas grid by early 2018.

Therma Power Visayas Inc. (TPVI), a unit of Aboitiz Power, is the one constructing the coal-fired power plant, which will provide the Visayas grid reliable and cost-efficient baseload power supply by 2017.

The Therma Visayas plant will improve the Visayas’ energy mix through dependable baseload power, securing the energy needs of the region.

This coal project has two 170-MW units.

The Toledo plant is bigger and more efficient than its 300-MW Davao coal plant it inaugurated early this year.

'No need to rebid'

Meanwhile, Moraza was asked to comment on the recent move of SPC Power Corp to file an urgent motion for reconsideration with the Supreme Court to ask the high tribunal to reconsider the decision to reinstate the award of the Naga Power Plant Complex to TPVI.

Moraza said there's no need to rebid the plant.

"Obviously we're not in favor of rebidding it," the COO said.

"What heard is whether you uphold the ruling or not; not to change it," Moraza said.

In a ruling dated October 5, 2016, the SC ordered the reinstatement of the Notice of Award issued by the Power Sector Asset and Liabilities Management Corp. (PSALM) dated April 30, 2014, awarding the 153.1-MW Naga Power Plant in Cebu to Aboitiz unit Therma Power.

In a Thursday disclosure to the Philippine Stock Exchange, SPC noted: "As of present, SPC Power Corp. is still operating the Naga Power Plant."

SPC's urgent motion for reconsideration was filed last October 26, 2016.

The SC ruling said that the bidding for the 153.1-megawatt power plant was valid but it invalidated the condition in the bidding granting SPC the right to top the bid.

The court also annulled and set aside the asset purchase agreement and the land lease agreement between PSALM and SPC for the said power plant.

The SC ruling also directed PSALM to execute the two agreements in favor of  TPVI. (FREEMAN)