Aboitiz Power eyes more Napocor assets

MANILA, Philippines -  Aboitiz Power Corp. (APC) is still keen on participating in the privatization of the remaining assets of the National Power Corp. (Napocor), a top company official said.

APC president and CEO Erramon Aboitiz said they are eyeing several assets and contracts of Napocor such as the hydropower plants in Mindanao and geothermal power plants in Leyte.

“Participating in the privatization of targeted Napocor assets that the Power Sector Assets and Liabilities Management Corp. (PSALM) will bid out is something we will continue to do,”Aboitiz said in his recent report at the company’s stockholders’ meeting.

He said they would also participate in bidding for some distribution assets.

“We will also keep a watchful eye for acquisition opportunities in both the generation and distribution sectors, like our recent agreement with our partner Pacific Hydro for APC to assume full ownership and contract of Luzon Hydro’s 70-megawatt (MW) Bakun plant,” he said.

Late last year, APC said that it is considering to spend about $2.8 billion should it decide to put up additional 1,400 megawatt (MW) of new capacities into the system.

“We still have plenty of room to expand. We still have I think more than 1,000 MW in Luzon, and then nationwide around 1,400 MW. And also, in Mindanao, our capacity there is very small at this point,” Aboitiz said.

He said they do not have exact investment figures yet on these projects but if they would develop the 1,400 MW which the company is still allowed to build under the existing rules on capacity cap, they may have to spend about $2.8 billion.

As a rule of thumb, a company need to spend about $1.5 million to $2 million per MW to put up a power facility.

He pointed out that they do not follow any timeline for these additional capacities.

“We don’t really have timetable, it’s just what we’re allowed by law and if the opportunites are there we would like to pursue it,” he said.

The Aboitiz Group’s market share is estimated at 15 percent in Luzon, seven percent in the Visayas, 15 percent in Mindanao and 14 percent for the national grid.

The Aboitiz Group gained competitive edge in the three grids with its acquisition of the 747-MW Tiwi-Makban geothermal plants, 360-MW Magat and 175-MW Ambuklao-Binga hydro plant, 100-MW Power Barge 117 and 100-MW PB 118 and the administration of Napocor’s contract in the 764-MW Pagbilao coal-fired power plant. 

Under the Electric Power Industry Reform Act (EPIRA), no company or related group can own, operate or control more than 30 percent of the installed generating capacity of a grid and/or 25 percent of the national installed generating capacity.

Aboitiz said they would be expanding their capacities by building new plants and pursue the bid for Napocor assets.

“We’re still interested in Unified Leyte. We’re interested in the hydros of Napocor whether it be CBK (Caliraya, Botocan and Kalayaan) or Agus, if they sell it,” he said.

The APC official added that they would also be expanding their existing power plants in the Visayas and Mindanao.