APC inks deals for Davao power plant

Aboitiz Power Corp. has entered into $546 million (roughly P23 billion) worth of contracts with local and foreign contractors for the construction of its planned 300-megawatt coal-fired power plant in Davao.

In a disclosure to the Philippine Stock Exchange on Monday, APC said the contracts signed by its wholly owned subsidiary Therma South Inc. were for the construction, supply and coordination concerns relating to the Davao coal facility, which will be put up in Barangay (village) Binugao, Toril district, Davao City; and in Barangay Inayawan, Sta. Cruz, Davao del Sur.

APC said it could now proceed with the Davao coal project as the project had already been approved by the Davao City Council and had been granted an Environmental Compliance Certificate (ECC) by the Department of Environment and Natural Resources through its Environmental Management Bureau.

APC officials earlier stressed the importance of the company’s planned coal facility in providing reliable and affordable power in Davao.

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

APC officials noted that the coal facility would help stabilize power supply in Mindanao because the island—which sources more than half of its electricity requirements from hydropower sources—needs to get the right mix of power sources to shield it from adverse weather developments.

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

By 2014, the shortfall will be about 480 MW. Under such scenario, power supply to the cities of Davao, Cagayan de Oro, General Santos, Zamboanga and Butuan may be cut off.

Link from business.inquirer.