Aboitiz unit inks $546-M Davao power plant deal

MANILA, Philippines - A unit of Aboitiz Power Corp. has signed a $546-million deal with contractors and suppliers for the construction of a clean coal-fired power plant in Southern Mindanao.

In a disclosure, Aboitiz Power said its subsidiary Therma South Inc. (TSI) “entered into construction, supply and coordination contracts with local and foreign contractors for the construction of TSI’s 300-megawatt (MW) circulating fluidized-bed coal-fired power generation facility.”

“The aggregate value of the construction, supply and coordination contracts for the Davao coal project is around $546 million,” it added.

The coal-fired power plant will be located in Toril District, Davao City and Sta. Cruz in Davao del Sur.

In June last year, the Davao City Council endorsed TSI’s power plant project. TSI will use clean coal technology, which seeks to reduce harmful emissions.

TSI already secured an environmental compliance certificate from the Department of Environment and Natural Resources through the Environmental Management Bureau.

As of end-March, Aboitiz Power’s attributable capacity was at 2,350 MW, up by 15 percent from last year.  It owns and operates the 747-MW Tiwi-Makban geothermal plants in Albay, two 100-MW bunker-fired power barges, the 105-MW Ambuklao hydroelectric plant in Benguet and the 100-MW Binga hydroelectric plant in Benguet.

It also holds the independent power Producer administrator contract for the 700-MW Pagbilao coal-fired plant in Quezon and owns a 232-MW coal-fired power plant located in Misamis Oriental.

The company will spend P170 billion in the next three years for its new power ventures and for the rehabilitation and upgrade of existing assets.