Monday, April 07, 2008 AP to construct 300MW plant
Aboitiz Power Corp. (AP) subsidiary Redondo Peninsula Energy Inc. has issued a letter of award to Formosa Heavy Industries to supply the boiler, steam turbine, generator and related services to be used for the construction of a 300-megawatt coal-fired power plant in the Redondo Peninsula at the Subic Bay Freeport Zone.
The company will be required to make a five-percent down payment of about $10 million on or before April 30 this year.
The award serves to fix the price and delivery time of the equipment amid an environment of rising prices of raw materials and long delivery periods. After securing the necessary approvals, the power plant project is scheduled to start construction this year, with commercial operations to start in 2011.
The project is estimated to cost $500 million.
Redondo Peninsula Energy is a joint venture between AP and Taiwan Cogen International Corp. (TCIC), a subsidiary of Taiwan Cogen Corp. and an independent power producer in Taiwan with over 2,000 megawatts of capacity.
When completed, the Subic plant is expected to supply electricity to AP subsidiary Subic EnerZone Corp., which manages the power distribution system in the Subic Freeport Zone.
With many new locators entering the high-growth Freeport area, it is important to attract them with reasonably priced and reliable power.
Redondo Peninsula Energy is also looking at supplying power to neighboring distribution utilities, cooperatives and industries in Luzon. PR
