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| By Paul Anthony A. Isla |
| Reporter |
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| TO expand power capacities in the Mindanao grid, Aboitiz Equity Ventures unit Aboitiz Power Corp. is in talks with several banks on financing for the 42-megawatt (MW) Sibulan and the 30-MW Tamugan hydroelectric power plants.
“These two projects will be financed using internally-generated fund as well as through a project financing loan from local banks. We’re still in talks with the local banks for a syndicated loan to project finance the two projects,” Luis Miguel Aboitiz, senior vice president of Aboitiz Power told reporters at the sidelines of the League of Corporate Foundations CSR Expo 2007 launch.
The cost of constructing the power plants is estimated at P9 billion, according to Aboitiz. The amount the banks will possibly finance is still in discussion.
Aboitiz said they are looking at getting a longer-term loan from the banks. The Sibulan project, which will generate power from the Sibulan River, will include the construction of the two power plants, access roads and transmission lines and is designed to operate for 25-years.
Tamugan, on the other hand, will include the construction of three power plants, weir overflow dams and impounding basins and a tunnel that will divert water from Talomo to Tamugan River.
These will be undertaken by Hedcor, a subsidiary of Aboitiz Power. The power plants will hopefully ensure adequate power supply in the area.
“We target to have the groundbreaking for Sibulan next month, after having secured all the necessary permits, while the groundbreaking for Tamugan is set for next year. The output of the two power plants will be sold to distribution utilities in the Davao area that will include Davao Light and Power Corp.,” Aboitiz said.
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http://www.businessmirror.com.ph/05312007/companies04.html
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