Aboitiz Equity eyes first quarter of 2010 for coal-fired power plant
02/24/2009 | 01:18 AM
MANILA, Philippines - Aboitiz Equity Ventures, Inc. expects to start operating the first module of its 246-megawatt coal-fired power plant in Toledo, Cebu by the first quarter of next year as it tries to address the energy shortage in the province.
In a phone interview, Aboitiz Equity Senior Vice-President and Chief Financial Officer Stephen G. Paradies said they would complete 82 megawatts in February or March 2010, while the remaining 164 megawatts would be operational by June or July. The coal plant costs about $450 million.
The plant is a project of Global Formosa — a joint venture between Metrobank Group subsidiary Global Business Power Corp. and Formosa Heavy Industries Corp. of Taiwan — and Abovant Holdings Corp., which is a joint venture between Aboitiz’s energy unit Aboitiz Power Corp. and Vivant Energy Corp. Global Formosa owns 56% of the project, while Abovant has a 44% interest.
Mr. Paradies said the 246-megawatt plant they are building and another coal plant being put up by Korea Electric Power Co., as well as the continuous purchase of geothermal power from Leyte would hopefully solve the power shortage in Cebu.
"The plants will be able cover the demand of Cebu for several years," he said, but stopped short of giving an exact time frame.
He said Cebu has started experiencing tight power supply, and power plants using expensive fuel are already being used to meet the demand. Cebu is also getting geothermal power from Leyte via submarine cables.
"The power supply in Cebu is critical right now. Reserves are almost zero," he added.
Aboitiz Power is known to push for renewable energy projects, but Mr. Paradies said putting up a coal plant was much more economical.
"The demand of Cebu is quite small to consider putting up a renewable energy plant," he said, noting that Cebu City’s power demand amounts to only 330 megawatts.
Aboitiz Equity Ventures, Aboitiz Power’s controlling shareholder, has businesses in power generation and distribution, financial services, transportation and food manufacturing. — Ava Kashima K. Austria, BusinessWorld
In a phone interview, Aboitiz Equity Senior Vice-President and Chief Financial Officer Stephen G. Paradies said they would complete 82 megawatts in February or March 2010, while the remaining 164 megawatts would be operational by June or July. The coal plant costs about $450 million.
The plant is a project of Global Formosa — a joint venture between Metrobank Group subsidiary Global Business Power Corp. and Formosa Heavy Industries Corp. of Taiwan — and Abovant Holdings Corp., which is a joint venture between Aboitiz’s energy unit Aboitiz Power Corp. and Vivant Energy Corp. Global Formosa owns 56% of the project, while Abovant has a 44% interest.
Mr. Paradies said the 246-megawatt plant they are building and another coal plant being put up by Korea Electric Power Co., as well as the continuous purchase of geothermal power from Leyte would hopefully solve the power shortage in Cebu.
"The plants will be able cover the demand of Cebu for several years," he said, but stopped short of giving an exact time frame.
He said Cebu has started experiencing tight power supply, and power plants using expensive fuel are already being used to meet the demand. Cebu is also getting geothermal power from Leyte via submarine cables.
"The power supply in Cebu is critical right now. Reserves are almost zero," he added.
Aboitiz Power is known to push for renewable energy projects, but Mr. Paradies said putting up a coal plant was much more economical.
"The demand of Cebu is quite small to consider putting up a renewable energy plant," he said, noting that Cebu City’s power demand amounts to only 330 megawatts.
Aboitiz Equity Ventures, Aboitiz Power’s controlling shareholder, has businesses in power generation and distribution, financial services, transportation and food manufacturing. — Ava Kashima K. Austria, BusinessWorld
