Aboitiz Power Corp. (Aboitiz Power) said the expansion of its 340-megawatt (MW) baseload plant in Cebu Province remains on track and is likely to break ground within the first quarter of the year.
Luis Miguel Aboitiz, senior vice president of Aboitiz Power, said the company has started negotiating with the contractor after securing the engineering, procurement, and construction (EPC) contract.
AboitizPower’s subsidiary, Therma Visayas Inc. (TVI), signed an EPC contract with Hyundai Engineering Co. Ltd and Galing Power Energy Co Inc. after two months of negotiations.
“We are just finalizing the agreements and terms and then we have to give the notice to proceed,” the official told the reporters on the sidelines of an Energy Regulation Forum in Makati City.
AboitizPower said TVI will soon issue a limited notice to proceed to perform design engineering and detailed physical data collection in preparation for the construction of the power plant that will bring its gross capacity to 510 MW.
The plant, located in Sitio Looc, Barangay Bato, Toledo City, Cebu, is targeted to go online by the third quarter 2017.
The project’s generating equipment will consist of two 170-MW steam turbines and two circulating fluidized bed boilers which burn solid fuels such as coal.
The P41-billion coal-fired power plant is expected to help meet growing demand for more electricity capacity in the Visayas grid by next year.
AboitizPower CEO Erramon I. Aboitiz earlier said the project will assure Cebuanos that they will have adequate and competitively priced baseload power supply on the island by 2017.
“This is a very important project for the Visayas grid,” he said.
The Department of Energy (DOE) earlier said that the Visayas grid would face critical supply from 2015 to 2018.
According to AboitizPower, the TVI project has been expedited to meet this looming power deficit.