Aboitiz can expand Davao plant

Subscribe Now September 17, 2012 at 04:01pm

Aboitiz Power Corp. has the leeway to further expand its ongoing P25-billion, 300-megawatt coal-fired power plant in Davao should there be a need for additional capacity in Mindanao. Bobby Orig, first vice president for Mindanao affairs of APC, admitted that there were no discussions yet on expanding the Davao coal project, which is expected to be completed within the first quarter of 2015.

“As of now we’re not talking of an expansion. But if there’s a need, the group is open to expanding. The one we’re building [can generate] 300 MW, but the entire place can be expanded to add up to another 300 MW,” Orig explained, adding that the company would remain “open to considering all opportunities.”

Meanwhile, the current Davao coal project remained on track, according to Orig, with the first phase of 150 MW seen to be completed within the last quarter of 2014 and the last phase of another 150 MW by the first quarter of the following year. The project is being undertaken by Therma South Inc., a wholly owned subsidiary of APC.

Last July, APC was able to sign $546 million worth of contracts with local and foreign contractors for the construction of the facility.

The contractors included Formosa Heavy Industries Corp. and a consortium composed of Black & Veatch and Leighton Contractors (Philippines) Inc. Under the contracts, Formosa Heavy Industries would design, supply and erect the power block equipment, while the Black & Veatch consortium would perform civil works as well as engineer, procure and construct the balance of plant systems and facilities.

The coal-fed power project is expected to generate up to 2,000 direct and indirect jobs during the estimated 37-month construction period.

APC has underscored the importance of the company’s planned coal facility as this would provide reliable and affordable power, which is essential to Davao city’s growth and development.

The company also assured Davao residents that the 300-MW circulating fluidized-bed coal-fired power plant by the Aboitiz group would be equipped with state-of-the-art technology capable of meeting stringent health and environmental standards.

APC officials earlier noted that the facility would also help stabilize power supply in Mindanao because the island—which sources more than half of its electricity requirements from hydropower sources—needed to get the right mix of electricity from different sources to shield it from adverse weather developments such as the El Niño dry spell.

They had pointed out that, based on government estimates, the Mindanao power supply shortage was expected to worsen over the next few years.

By 2014, the shortage would be about 480 MW—reportedly enough to cut off the entire power supply in the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga and Butuan.

Source: inquirer.net



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