Aboitiz group sets P78B power investments
MANILA, Philippines – The Cebu-based Aboitiz group is spending P78 billion this year to build new power plants amid tightening energy supply in the country.
The amount accounts for bulk of the P88-billion capital expenditure (capex) budget earmarked by holding company Aboitiz Equity Ventures (AEV) for this year. In 2013, AEV allocated P59 billion for capex.
AEV said in a statement Thursday, January 29 that it is investing heavily in its power business, Aboitiz Power Corporation, in response to the country's need for additional power generating capacity. (READ: 'Tight supply till 2016 but no power failure')
Aboitiz Power is implementing a 5-year plan to increase its capacity by up to 2,098 megawatts (MW) by 2017.
The power unit is already constructing 3 run-of-river hydro plants equivalent to 27 MW. These plants include the 14-MW Tudaya I and II hydro plants in Mindanao that are expected to be completed by the first half of 2014, and the 13-MW Sabangan hydro plant in Luzon that will be finished by early 2015.
Also expected to help address supply shortfall in Mindanao is the company's 300-MW Davao baseload plant, which broke ground in 2012.
In Luzon and Visayas grids, an additional 400 and 300 MW will come in by 2017 from Aboitiz Power's Pagbilao baseload plant and Cebu baseload plant, respectively. The company targets to expand the Pagbilao plant and construct the Cebu plant within 2014.
The rest of AEV's capex will be spent for its other business units engaged in banking, feeds manufacturing, property and fuel.
Union Bank will invest P680 million for technology-related expenditures and the expansion of its branch network to grow deposit and loan accounts.
Pilmico is spending P2.7 billion for the expansion of its feeds and farms operations through the construction of 2 feedmill plants and the expansion of its breeder and growing-finishing farms.
Aboitiz Land estimates that it will be spending roughly P4 billion as it opens new phases for its Priveya Hills, Pristina North, and Almiya projects. The developer is looking at launching at least 3 new residential projects within the year. It has also recently entered into a joint venture agreement with Ayala Land for the development and operation of a 15-hectare city center in Subangdaku, Mandaue City in Metropolitan Cebu.
Fuel unit Aseagas will break ground on its $50-million liquid biomethane plant, which will produce transport fuel from organic waste. Once completed, the plant will have a capacity of around 9,000 metric tons of bio-methane per year. Construction is expected to be completed within 18 months. – Rappler.com