Aboitiz Power proposes new plant in Davao

Listed Aboitiz Power Corp. is proposing to put up a coal-fired power plant project in southern Davao. In a statement released Friday, the company said the proposed 300-megawatt circulating fluidized bed coal-fired power plant will be a project of subsidiary Therma South Inc. Investment cost is estimated to reach P25 billion, which will be financed by internally-generated funds. “AboitizPower has been in Davao for fifty years…The (Mindanao) region needs a steady supply of power to fuel its growth, as industries, investments and businesses expand. This in turn, will provide livelihood and development to communities. As communities and households increase, so will their demand for electrical power as well," said Manuel Orig, First Vice-President for Mindanao Affairs of AboitizPower. The demand for electricity for Davao and the rest of Mindanao is growing steadily but the supply has been lagging behind the needed baseload capacity. Government estimates show that unless power supply generation is increased soon, Mindanao is facing a power shortage. By 2014, the shortage will be around 480 MW – enough to cut off the entire power supply to the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga and Butuan. Orig said an additional power plant is needed, especially as 2011 enters the dry summer season. Dry months usually bring down the water level in Lake Lanao, which lowers the energy-generating capacity of the Agus-Pulangi hydropower complex – the lifeblood of Mindanao’s power supply. AboitizPower operates hydro-electric power plants in Davao and Benguet as well. The company is set to build even more hydro-electric power plants in the next two years. Five hydropower projects have been started in 2011. In Davao, AboitizPower is set to construct the hydropower plants Tudaya 1 (6.6-MW, upstream of Sibulan A) and Tudaya 2 (7-MW, downstream of Sibulan B) in August 2011, which are expected to be finished by December 2012. Two other hydro power plants in Kitawtaw, Bukidnon, the 18-MW Sita and 12-MW Simod, are due for completion in 2013. In Benguet, the Irisan 3.8-MW hydropower facility is set to be completed by September 2011. AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It operates several hydroelectric and geothermal assets in its generation portfolio and also has non-renewable power plants located across the country. The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao. -- CMA/OMG, GMA News