Power firm Aboitiz Power Corp. has allotted $1 billion or more than P40 billion for the construction of the 420-megawatt (MW) coal-fired Pagbilao Unit 3 power plant in Quezon.
At the plant’s launch Wednesday, Erramon Aboitiz, chief executive officer of Aboitiz Power, said that Pagbilao 3 will be commissioned in 2017.
“While we had hoped to start building this plant earlier, we are here today with a fully financed 420-megawatt plant with a project cost of $976 million,” Aboitiz said.
Pagbilao Energy Corp. (PEC), the joint venture between TPC Holdings Corp. (TPEC) and Therma Power Inc. (TPI), will operate the Pagbilao Unit 3. TPEC and TPI are wholly owned subsidiaries of TeaM Energy Corp. (TEC) and AboitizPower, respectively. TEC is AboitizPower’s partner in the Pagbilao projects.
The existing Pagbilao Units 1 and 2 have a combined capacity of 735 MW.
Funding for the Pagbilao Unit 3 will come from the P88 billion capital expenditure (capex) that parent firm Aboitiz Equity Ventures Inc. (AEV) has allotted for the year. AEV earlier said that most of its 2014 capex would go to AboitizPower.
Aside from the Pagbilao Unit 3, AboitizPower has other projects that will be underway in the next few years, namely, the 14 MW Tudaya I and II hydro plants in Mindanao and the completion of plants due 2015 which include the 13 MW Sabangan hydro plant in Luzon and the 300 MW Therma South baseload plant in Davao.
Along with Pagbilao Unit 3, also expected to be operational in 2017 are the 52 MW Manolo Fortich hydro plant in Bukidnon and the 300 MW Therma Visayas baseload plant in Cebu.
Earlier, AboitizPower said it was looking at solar and wind energy sources to expand its current portfolio, in addition to its plans to expand in Southeast Asian countries to take advantage of the Asean integration next year.
“We hope that our continued investments in energy infrastructure would help ease the threat of a possible power supply shortfall in the country,” Aboitiz said.
AEV’s power business is implementing a five-year plan which began in 2012. When completed, the projects will double the current 2,000 MW capacity to over 4,000 MW in 2017.
AboitizPower is the power unit of AEV, which is the holding company of the Aboitiz Group of Companies. It has businesses in financial services and portfolio investments (Union Bank); food manufacturing (Pilmico Foods); waste-to-fuel (Aseagas Corp.); and real estate (Aboitiz Land).