ABOITIZ Power Corp., the power arm of listed conglomerate Aboitiz Group, has tapped Hyundai Engineering Co., Ltd and Galing Power Energy Co., Inc. for the construction of a P41-billion coal-fired power plant in Cebu.
In a disclosure to the Philippine Stock Exchange on Monday, Aboitiz said that Therma Visayas, Inc. (TVI), a wholly-owned subsidiary of AboitizPower, has signed an engineering procurement and construction (EPC) contract with Hyundai and Galing for the 300-megawatt Cebu plant.
“This project will assure Cebuanos that we will have adequate and competitively priced baseload power supply in the island by 2017. This is a very important project for the Visayas grid,” Aboitiz told the local bourse.
“We look forward to working closely on this project with our EPC contractor and the local community to ensure we deliver a quality power plant on time,” he added.
With the project cost pegged at P41 billion, AboitizPower is currently working to close a financial deal with local financing institutions.
A few months ago, AboitizPower president and chief executive officer Erramon Aboitiz said the company was still evaluating the bids for the EPC contract for the project.
According to him, construction of the power plant and its eventual commissioning would depend on how fast they could finish assessing the EPC bids.
Upon signing the EPC contract, TVI will issue a Notice to Proceed to perform design engineering and detailed physical data collection in preparation for construction of the plant.
With construction targeted to start by the middle of this year, the plant is scheduled to go online by the third quarter of 2017.
The company said it started mulling over the plan to build the plant as early as February 2013.