Davao City council okays Aboitiz coal plant project

MANILA, Philippines - The Davao City council has given its go-signal for the proposed 645-megawatt coal power plant project of Aboitiz Power Corp. subsidiary Therma South.

“As we address the ongoing power supply shortage in Mindanao, we also have to look at the future energy demands of Mindanao. This expansion will ensure Mindanao will have enough power when demand catches up with supply again in 2017 and 2018,” Therma South president and COO Benjamin Cariaso Jr. said.

The first 300-MW capacity of Therma South, set for commercial operations in the first half 2015, is already almost contracted out to distribution utilities and electric cooperatives in Mindanao.

The expansion is set for completion in 2017 and 2018, when demand for power in Mindanao will be expected to exceed supply once again.

“AboitizPower’s main interest in expanding this plant is to help Mindanao avoid repeating the big problem of the past where it failed to build the power plants needed before the demand for power kicked in. As a consequence, most parts of Mindanao have, for years and until today, been experiencing prolonged and frequent brownouts  and it’s growth and development has been severely affected,” AboitizPower first vice president for Mindanao affairs Manuel Orig said.

The power plant will also be using circulating fluidized-bed technology to ensure the power plant, during operations, will meet national and international environment and health standards.

More than just a tree planting site, the 1,000-hectare area of the program will reforest the ancestral lands which is also serves as Davao City’s watershed.

By organizing, capacitating and financially assisting indigenous people, Therma South aims to cover 1,000 hectares with timber and agro-forest trees in 10 years. The trees have been computed to significantly offset the carbon footprint of the power plant.

The company committed to the city council to double the area of its carbon sink with the expansion. The company also committed to establish similar projects in other areas as well as set up mangrove parks along the coastline near the project.