Aboitiz Power rakes in P1.745-billion initial revenues from Davao plant

by Myrna Velasco – February 1, 2016

from Manila Bulletin

The initial block of the 300-megawatt Davao coal-fired power plant of the Aboitiz Group already fetched revenues reaching P1.745 billion in 2015, and this is seen shored up with the commercial operation of the second unit this February 2.

Aboitiz Power chief finance officer Manuel R. Lozano noted that the revenues were mainly “from Unit 1 as commercial operation date for unit 2” had been targeted much later.

The facility was just inaugurated last month by President Aquino, but the initial block of 150MW had already been commercially on-line since September last year.

In a separate statement to the media, the facility’s corporate vehicle Therma South, Inc. has noted that the plant “declared commercial operations starting February 2, 2016,” – this was specifically for Unit 2 of 150MW capacity.

According to TSI president and chief operating officer Sebastian R. Lacson, the timing of the plant getting on stream is at its best pace given the much-anticipated strike of El Niño phenomenon that may impact adversely on Mindanao grid.

He said the plant “will provide much-needed baseload power for our customers, hopefully contributing to the long-term solution of the Mindanao power problem.”

The power supply solution for Mindanao is coming a little bit late than targeted – and circumstances this year may be compounded by extended dry season.

The facility’s Unit 2 has recently been ‘under corrective shutdown’ as part of its commissioning process.

The project firm stressed “Unit 2 has been undergoing testing and commissioning for the past several months, and has in fact, been delivering on a non-committed basis, commissioning energy to its customers at discounted rates.”

The bulk of the plant’s capacity had been committed via a supply deal with Davao Light & Power Company; while the rest had been strategically spread across electric cooperative-buyers in Mindanao.

“By declaring full commercial operations of the two units, TSI’s customers comprised of 20 electric cooperatives and distribution utilities in the Mindanao region can now receive their full contracted capacity,” Aboitiz Power said.