Sunday, July 15, 2007 Power firm to improve assets, subsidiaries
AN ELECTRIC company, Aboitiz Power Corp. (APC), has allocated P8.24 billion for the expansion and upgrade of its power assets and subsidiaries until 2008.
Of the P8.24 billion total capital expenditures, at least P2.811 billion is allotted for the year 2007 where P1.142 billion will be spent by its subsidiary Hedcor's for the completion of the 42.5 megawatt (MW) Sibulan hydro facility in 2009.
The Sibulan plant is a two run-of-river hydroelectric plants located southwest of Davao City with the total project cost of P5 billion, including access roads and transmission facilities.
The capex for this year also includes expenditures of APC's power distribution subsidiaries like Visayas Electric Co. Inc. (Veco), the second largest distribution utility in the country.
APC has allocated P594 million for Veco's capital expenditure this year to enable the power distributor to effectively serve its customers.
For Davao Light and Power Co. (DLPC), APC set aside P434.6 million for capex.
The remaining more than P1 billion of the 2007 capex were allocated to distribution utilities like Cotabato Light and Power Co. (CLPC) getting P72.9 million, San Fernando Electric Light and Power Co. Inc. (Spelapco) with P140 million, and Subic Enerzone Corp. (SEZ) with P156.4 million while APC will spend a total of P270 million for its generation companies, excluding the Sibulan facility.
For 2008, APC will also spend bulk of its capex for the Sibulan hydro facility at P2.241 billion and P1.863 billion for the 30.5MW Tamugan-Suawan hydro project also located in Davao City.
The Tamugan-Suawan project would be completed by 2010 and is estimated to cost P4.2 billion. Both hydro facilities in Davao were granted tax incentives by the Board of Investments such as a six-year income tax holiday and reduced import duties on capital equipment.
In its prospectus, APC has set aside an investment of P500 million for Veco, about P444 million for DLPCand the remaining capex will be spent by its other subsidiaries.
"The company expects to fund its budgeted capital expenditures principally through proceeds of this offering and cash from operations, as well as through borrowings," APC said.
The company hoped that it would raise P10 billion from its initial public offering on July 16. (MSN/Sunnex)
