Aboitiz to spend P170-B on power, mainly in Mindanao
MANILA, Philippines - From now to the end of 2015, Aboitiz Power plans to spend P170 billion on power generation projects, primarily in Mindanao, according to Aboitiz Equity Ventures (AEV) Chairman Jon Ramon Aboitiz.
"By 2015 we should have 3,100 megawatts attributable capacity to Aboitiz power, that doesn't include other opportunities or acquisitions, these are basically new plans," Aboitiz told reports on May 24.
That would mean a 32% increase in capacity since Aboitiz said, "Today we are at 2,350 megawatts."
He said a major part of their planned capital expenditure would be funneled to Mindanao, which has been reeling from a shortage of electricity. Several areas in the Southern province suffered frequent brownouts in recent months, repeating the power crisis that hit in 2010. "In Mindanao the tightness of situation is there," he added.
"We're looking at investing about P35 billion in Mindanao to build 354 megawatts of power, 300 of those megawatts will be the coal project we have in Davao and 54 will be run-of-the river hydros. So hopefully by the first quarter of 2015, we'll begin to rollout these projects," said Aboitiz.
Aboitiz Power earlier announced its plans to construct 2 hydroelectric power plants in Kitaotao, Bukidnon.
Power is AEV's chief business. According to the company's 2011 yearend report, power contributed a whopping 78% to the company's 2011 income, albeit down from 2010's 85% as the group's banking assets stepped up their contribution to revenue. - Rappler.com