Aboitiz Power Corp. is planning to raise about P9 billion to finance its various power generation projects, a company official said.
Aboitiz Power senior vice president Luis Miguel Aboitiz told reporters that they are now in discussions with some local banks for a syndicated loan for its 42-megawatt (MW) Sibulan and 38-MW Tamugan hydropower facilities.
“These two projects will be funded by internally-generated fund as well as local banks. We’re in discussions with local banks for a syndicated loan to finance the two projects and the amount is still under discussion. We’re trying to get a longer-term loan from the banks we’re in talks with. And since these are two projects, we’ll have to apply separately for each project,” Aboitiz said.
According to Aboitiz, they hope to firm up the loan syndication for the P5-billion Sibulan project soon as they expect to hold the groundbreaking of the power plant in the next few days.
“We have a hydroelectric power plant that we are building in Davao called Sibulan that’s about 42 megawatts. And we hope to break ground within a month. We have already secured all the necessary permits. And the output will be sold in the Davao area. And since that’s a hydro, there are no greenhouse gases,” he said.
He said they expect the Sibulan hydropower plant to start commercial operations in two years’ time.
The construction of its P4 billion Tamugan power plant, on the other hand, which will cater to customers in Davao, will commence next year and will be completed by 2011.
Aboitiz said they have not allocated a specific budget for their power generation projects.
“For expansion projects, we don’t actually budget it in the sense that we have to use the budget. But essentially we look at opportunities that we’re interested in. And if they are found to be financially feasible in terms of risk and reward then we decide to implement,” he explained.
Aboitiz Power is the holding company of the Cebu-based Aboitiz Equity Ventures Inc. for all its power generation businesses. It has more than 400 MW capacity in the generation side and about 600 MW for distribution.
Its distribution companies and its corresponding interests are: Davao Light and Power Co. Inc. (99.9 percent); Cotabato Light and Power Co. Inc. (99.9 percent); Visayan Electric Co. (VECO), (54.7 percent); San Fernando Electric Light and Power Co. (43.8 percent); and Subic Enerzone Corp. (64.3 percent).
The power generation companies under Aboitiz Power’s portfolio are: Philippine HydroPower Corp. (100 percent); Hedcor Inc. (100 percent); Luzon Hydro Corp. (50 percent); Southern Philippine Power Corp. (20 percent); and Western Mindanao Power Corp. (20 percent).
It also has a consulting business arm, Aboitiz Energy Solutions Inc.
A new subsidiary, SN Aboitiz Power Inc. (SNAP) recently won a $530-million bid for the 360 MW Magat hydroelectric power plant in Ramon, Isabela.
Aside from the greenfield projects, Aboitiz Power is also eyeing to bid for some Napocor assets such as Tiwi-Makban geothermal power plants and Ambuklao-Binga hydropower plants.