Thursday, November 22, 2007 Firm mulls expanding Mindanao power plant
LISTED firm Aboitiz Power Corp. (APC) is looking at adding another 100 megawatts (MW) to the 232-MW Mindanao coal-fired power plant.
Erramon Aboitiz, president of APC who just sealed a deal with Steag State Power AG for the acquisition of 34 percent shares of the coal facility, said they will discuss with their partners the possibility of expanding the plant.
"Well, we can expand it by 100 MW to 200 MW, but you have to take into account is whether the Mindanao grid can absorb that big an expansion so I think 100 MW will have no problem, but 200 MW might be a lot," Aboitiz said.
He said expanding the facility is really one of their objectives, but having too much excess would be a problem in the future.
"Eventually, you'll need it (expansion) but you don't want to carry that whole excess capacity not earning. It's an analysis we've have to make," he said.
He added that even their partners are open to the idea of expanding the power facility but these should be discussed first with their partners.
According to Aboitiz, they have just signed the deal with the German company Evonik Industries AG, which still controls the majority or about 55 percent after releasing the 34 percent to APC while the 11 percent share in the company is held by the local project partner State Investment Trust Inc.
The 34 percent share valued at US$91.9 million was formally signed last November 15.
Earlier, Aboitiz said: "The investment is very strategic for Aboitiz Power. Aside from the expansion potential, the Evonik power plant is mitigating a shortage of power supply and improving the reliability of power in Mindanao. We have been providing Mindanao power for over 70 years."
Aboitiz also owned Davao Light and Power Company, which is the largest distribution in Mindanao, and Cotabato Light and Power Company.
The firm likewise operates a hydro facility in Davao and has investments in various generation assets in Mindanao, which include Western Mindanao Power Corp. in Zamboanga and Southern Philippines Power Corp. in General Santos City. (MSN/Sunnex)
