Ambuklao plant rehabilitation now 75% complete

CEBU, Philippines - AboitizPower Corporation, in a disclosure to the Philippine Stock Exchange, informed that the rehabilitation of the civil and electro-mechanical components of the 75-MW Ambuklao Hydroelectric Power Plant located in Bokod, Benguet is now 75% complete.

However, SN Aboitiz Power-Benguet, Inc. (SNAP-Benguet), owner of the Ambuklao plant, has encountered challenges in completing the plugging of the existing plant headrace tunnel needed to connect a new water intake and tunnel to the turbines for the generation of electricity.

The initial attempt to close the old headrace tunnel using concrete plug has proven difficult due to the unexpected volume of sediments (silt and clay) in the tunnel compounded by the effects of Typhoon Pepeng (international name: Parma).

Instead, SNAP-Benguet will undertake construction of a new extended headrace tunnel to allow water to flow through to the new turbines, and consequently abandon the old tunnel. With the construction of the new headrace tunnel, the Ambuklao plant is expected to be completed by the last quarter of 2011 when all three units are operating, instead of end 2010 as earlier reported.

The 75 MW Ambuklao plant was shut down by National Power Corporation in 1999 due to technical problems, and has not operated since. Upon acquisition of the Ambuklao plant, SNAP-Benguet immediately undertook rehabilitation activities to operate the plant again.

“We have always understood the challenges involved in rehabilitating the Ambuklao plant which has not operated for more than ten years,” SNAP-Benguet Chief Executive Officer Emmanuel V. Rubio said.

“Despite the current challenges, we are committed to restore the Ambuklao plant and enable it to generate at higher capacity. We believe that the construction of a new headrace tunnel will ensure completion of the rehabilitation of the Ambuklao plant,” Mr. Rubio added.

Upon rehabilitation, the Ambuklao plant will have a capacity of 105 MW of renewable energy to significantly augment supply of electrical power to the Luzon Grid.

SNAP-Benguet is a joint venture between SN Power of Norway and AboitizPower. SNAP-Benguet submitted the highest bid of U.S. $325 Million for the acquisition of the Ambuklao plant and the 100-MW Binga Hydroelectric Power Plant also located in Itogon, Benguet. The plants were sold as a package in a public bidding held on November 28, 2007.