Aboitiz Power allots P51.5-B capital expenditure budget Read

by Myrna Velasco – May 16, 2016

from Manila Bulletin

Publicly listed Aboitiz Power Corporation has ramped up its capital expenditure (capex) spending this year to P51.5 billion from last year’s P34.4 billion as it goes full blast on construction of greenfield power projects.

“To continue its trajectory to hit 4,000MW (megawatts) by 2020, capex spend in 2016 will go up to P51.5 billion,” the company has noted.

AP chief executive officer Erramon I. Aboitiz noted that one component of their capital outlay this year would be the anticipated kick-off of the initial 300-megawatt phase of the Redondo Peninsula (RP) Energy coal-fired power project in Subic.

The project is a tie-up with Meralco PowerGen, the power generation arm of Manila Electric Company (Meralco); and Taiwan Cogeneration Corporation. Meralco PowerGen is RP Energy’s majority equity holder.

The proposed Subic plant has been designed for 600MW capacity, but the initial phase will just be for 300MW pending resolution of transmission line issue for the propounded next unit of another 300MW.

Currently, Aboitiz Power is advancing the construction of two coal-fired power projects in Luzon and Visayas grids. Both plants are targeted on stream next year.

One is the Pagbilao plant expansion of 400MW, its joint venture with TeaM Energy Philippines, local subsidiary of Japanese firms Tokyo Electric Power Company and Marubeni Corporation.

Other projects in full swing construction are the 300MW coal-fired power facility in Toledo, Cebu; and the 68MW Manolo Fortich hydropower project in Bukidnon.

While pursuing coal plant builds, the company noted that it will also “vigorously pursue growing its renewable energy portfolio.”

Aboitiz said “while the Philippines contributes to only 0.3-percent of global GHG (greenhouse gas emissions), we fully support the government’s call to further reduce our carbon footprint.”

He added that the company plans “to build and operate an additional 200MW of run-of-river hydro plants by 2020.”

Further, Aboitiz Power emphasized that it is similarly “pursuing the expansions of geothermal and biomass power plants.”