ABOITIZ Power Corp. (AboitizPower) said on Tuesday it has decided to exit from the greenfield geothermal exploration and development project of its wholly owned Singapore-based subsidiary, AboitizPower International Pte. Ltd. (AP Intl), in Ijen, East Java Province, Indonesia.
AP Intl entered into an agreement with PT Medco Power Indonesia to participate in the exploration and development of a potential 2 x 55-megawatt (MW) geothermal power plant in September 2015.
In a disclosure in Philippine Stock Exchange (PSE), AboitizPower said it has decided to focus and allocate its resources for other ongoing and pipeline projects and has agreed to step aside to allow its partner to proceed with the project.
Last year, Aboitiz Equity Ventures (AEV), the parent company of AboitizPower, expressed keen interest to acquire Chevron’s geothermal assets in the Philippines and Indonesia, but it lost to Ayala energy arm AC Energy Holdings Inc. (AC Energy), which acquired the geothermal assets as part of two Philippine and Indone- sian consortiums.
Meanwhile, AboitizPower’s project bond deal for the Tiwi-MakBan (Makiling-Banahaw) Geothermal Energy Project has bagged the 2016 Bond Deal of the Year award by the prestigious Project Finance International magazine of Thomson Reuters. The awarding ceremony will be held tomorrow, Feb. 1, at the Hilton, Park Lane in London.
The P12.5-billion local currency, multi-tranche bond issuance, backed by the Asian Development Bank, was the first green bond issuance in Asia and the Pacific.
AboitizPower through its subsidiary AP Renewables, Inc. (APRI), used the issuance to finance the rehabilitation of the Tiwi-MakBan geothermal power facilities, which it bought from the government in 2009, and to partially fund its operating expenditures and future capital investments.
The two power plants, located in Batangas and Laguna (MakBan) as well as in Tiwi, Albay combine for 390 MW of clean renewable power for the Luzon grid.
“This award proves we are on the right path, both in our efforts to find power generation technologies that support global commitments to address climate change and in our intention to find innovative and viable financing options to support our plans,” AboitizPower President and Chief Operating Officer Antonio R. Moraza said in a statement.
AboitizPower has one of the widest portfolios of energy sources in the country. Thirty-nine percent of its 3,350 MW sellable capacity comes from its renewable power plants—geothermal, large hydro, run-of-river hydro and solar power plants. The company also operates a number of coal power plants for baseload capacity and oil-fired power plants for reliable peaking supply.