Aboitiz, contractors ink $546-M power plant deal

KIDAPAWAN CITY -- The Aboitiz Power Corporation, through its subsidiary, Therma South Inc., has signed a $546-million deal with local and foreign contractors to construct a 300-megawatt (MW) coal-fired power plant in Davao region.

Based on the contract, the power plant would be put up at Barangay Binugao in Davao City and Barangay Inawayan in Sta. Cruz town in Davao del Sur.

The document stated that the contractors include Formosa Heavy Industries Corporation and a consortium composed of Black & Veatch and Leighton Contractors-Philippines Inc.

The Formosa is tasked to design, supply, and erect the power block equipment, while Black & Veatch consortium will do civil works, procure, and construct the balance of plant systems and facilities, the contract said.

The Black & Veatch, records showed, was ranked as the number one engineering company in power generation services by Engineering News-Record in 2011.

"Anticipating tightness in the power supply in Mindanao, Aboitiz Power is committed to do what it takes to build the Therma South power project at the soonest possible time. We will continue to invest in power generation projects to support the growth of Mindanao today and in the future," said Erramon Aboitiz, Aboitiz Power president and chief executive officer.

The company, according to Aboitiz, has been an integral part of the Mindanao power sector since 1930s.

Commercial operations of the first 150-MW generating unit are targeted on or before March 31, 2015, company data showed.

During the construction period, the company projects up to 2,000 direct and indirect jobs.

The Aboitiz Power said the coal-fired power project has received approvals from the Davao City Council and the Municipal Council of Sta. Cruz in Davao del Sur.

It was also granted an Environmental Compliance Certificate by the Department of Environment and Natural Resources, through the Environmental Management Bureau.

In a statement issued to media, Aboitiz said, "The coal-fired power plant will be equipped with state-of-the-art technology that will meet stringent international health, safety and environmental standards to ensure that the facility will have the least adverse impact on the environment and surrounding communities." (MCM)