Aboitiz Power Corp. to Take Over Tiwi Geothermal Power

Albay Province (16 April) -- The Aboitiz Power Corp., the holding company for the Aboitiz Group's in power generation and distribution, is close to taking over the Tiwi geothermal power facilities next month following its down payment of 40 percent or P8 billion from the company's internally generated funds.

Located in the municipality of Tiwi, this province, the Tiwi geothermal power facilities and assets were previously owned by the government-run National Power Corporation. The power plant can generate up to 289 megawatts (mW) of power.

It can be recalled that the Power Sector Assets and Liabilities Management Corp. (PSALM) has declared AP Renewables, Inc., the corporate vehicle the Aboitizes used to bid for the Tiwi-Makban geothermal power facilities, the new operator of the two power plants in Luzon.

PSALM, the government's power privatization firm, disclosed that the AP Renewables, Inc. offered a bid of $446.888 million, higher than the $368.44 million bid of the Lopez-controlled Energy Development Corporation.

The Cebu-based Aboitizes said the Aboitiz Power Corp. has funds from the IPO and issued fixed rate notes last December sufficient for the 40 percent down payment.

Aboitiz Power Corp. was able to raise P3.8 billion from the issuance of fixed rate notes in December.

The down payment, which includes money from the company's market debut and issuance of fixed rate notes, has also secured the power corporation to run the Makban facility-situated at the boundaries of Bay and Calauan towns in Laguna and Sto. Tomas, Batangas-with a capacity of 458.53 mWs.

The remaining 60 percent will be paid for a period of seven years.

The Tiwi-Makban power plants would be the first geothermal facility in the Aboitiz Group's portfolio. (PIA V)