MANILA, Philippines — AboitizPower Corp is spending $700 million to hike the capacity of two coal-fired power projects under development in Cebu and Davao.
On the sidelines of Aboitiz Equity Ventures Inc's (AEV) 20th listing anniversary, AboitizPower president and chief executive officer Erramon I. Aboitiz said the expansion of the facilities in Cebu and Davao will cost roughly $340 million each.
AboitizPower intends to tap lenders to finance 70 percent of the cost of the expansion, with the company raising equity for the remaining amount, Aboitiz said.
The expansion of both projects, originally rated at 300 megawatts each, will be completed in early 2018 with the notices to proceed for the additional units expected to be issued by March next year.
"The reality is we are seeing growth coming in and we're anticipating that. We really want to ensure all the customers in these two grids that there will be enough and quality power," Aboitiz said.
Last week, AboitizPower's board of directors approved the construction of additional power generating units for the company's coal projects in Davao and Cebu to 470 MW and 510 MW, respectively.
AboitizPower's subsidiary Therma South Inc is putting up the coal plant in Toril, Davao City and Sta. Cruz, Davao del Sur. Another subsidiary, Therma Visayas Inc, is constructing a similar plant in Toledo City, Cebu.
The company is adding 2,000 MW of generation capacity in the next five years as it remains on the lookout for acquisitions and investments locally and in Southeast Asia, particularly in Indonesia, Myanmar and Vietnam.
AboitizPower is the power generation and distribution unit of AEV, the Aboitiz family’s holding company for its financial, real estate and food manufacturing businesses. (Interaksyon.com)