BY MADELAINE B. MIRAFLOR REPORTER
Aboitiz Power Corp. is set to invest $750 million for a 300-megawatt (MW) power plant in Cebu as part of its P190-billion investment the company, together with its partners, has committed in building new power plants across the country for the next five years.
The holding company for the Aboitiz Group’s investments in the energy industry is also looking to increase its capacity to 3,500 megawatts, up 50 percent from its current capacity, over the next five years.
Erramon Aboitiz, Aboitiz Power president and chief executive officer, specified that the 300-MW power plant that the firm intends to develop in Cebu may come online by mid-2016. The company plans to construct the plant in the fourth quarter of this year.
“We are firming up soon the construction timelines of these facilities to ensure that they will be available to support the growth in electricity demand that we forecast for Visayas and Mindanao,” Aboitiz said.
Of the P190 billion, Aboitiz said that the company’s share is P125 billion while the remaining P65 billion is the share of its partners.
“Aboitiz Power will be investing P125 billion to build new power plants in the next five years, bringing our attributable capacity to roughly 3,500 MW,” Aboitiz further said.
He also specified that the power business will remain at the forefront of the group’s planned expansion, with the building of new generating capacity to support the anticipated economic growth in the country.
Aboitiz told reporters in a previous interview that Aboitiz Power is eyeing P85-billion worth of power investments in the next four years, as it aims to be one of the largest power firms in the country.
Of the P85 billion, the firm is looking to spend P35 billion for power projects in Mindanao alone to solidify its presence in the region.
Aboitiz Power ended the quarter with income contribution of P3.5 billion to the group, registering an 18-percent decrease when compared to the previous year’s P4.3 billion.
The growth in its net income was primarily driven by higher electricity sales from residential and commercial segments, registering increases in year-on-year attributable electricity sales of 3 percent and 2 percent, respectively.