Aboitiz Power abandons plan to bid for Masinloc power
(Reuters) - The Philippines' Aboitiz Power Corp. said on Friday it would not bid for the multi-million dollar 600-megawatt Masinloc power plant set to be auctioned by the government later this month.
"It is going to be a competitive bid and the asset is very difficult for us to value," Luis Miguel Aboitiz, the company vice president, told Reuters.
The group, which last week raised $221 million in the country's biggest initial public offering this year, said it will focus on hydropower and geothermal assets that will be sold by the state in the coming months.
Manila, which hopes to revive its multi-billion dollar power privatisation plans after failing to sell a licence to run the national grid in February, has said it would restart the auction for Masinloc on July 26 after a Malaysian-backed group backed out from the deal last year.
YNN Pacific Consortium Inc., which was controlled by Malaysian power firm Ranhill Bhd , failed to make a downpayment of $227.5 million for the plant from its bid of $562 million because Masinloc did not have a supply contract with Manila Electric , the country's largest power distributor.
To ensure this month's auction is a success, the state will guarantee a power supply contract to the buyer of Masinloc, a coal-fired plant in Zambales province, in the north of the country.
At least five groups have expressed interest in participating in the bidding, the government has said.
Aboitiz Power distributes about 6 percent of total kilowatt hours sold in the Philippines. Hydropower accounts for more than 60 percent of the company's generation capacity.
The family-run organisation ranks a distant second to Manila Electric Co. , but plans to invest between 15-20 billion pesos ($330-444 million) in the power sector over the next three years.
"It is going to be a competitive bid and the asset is very difficult for us to value," Luis Miguel Aboitiz, the company vice president, told Reuters.
The group, which last week raised $221 million in the country's biggest initial public offering this year, said it will focus on hydropower and geothermal assets that will be sold by the state in the coming months.
Manila, which hopes to revive its multi-billion dollar power privatisation plans after failing to sell a licence to run the national grid in February, has said it would restart the auction for Masinloc on July 26 after a Malaysian-backed group backed out from the deal last year.
YNN Pacific Consortium Inc., which was controlled by Malaysian power firm Ranhill Bhd , failed to make a downpayment of $227.5 million for the plant from its bid of $562 million because Masinloc did not have a supply contract with Manila Electric , the country's largest power distributor.
To ensure this month's auction is a success, the state will guarantee a power supply contract to the buyer of Masinloc, a coal-fired plant in Zambales province, in the north of the country.
At least five groups have expressed interest in participating in the bidding, the government has said.
Aboitiz Power distributes about 6 percent of total kilowatt hours sold in the Philippines. Hydropower accounts for more than 60 percent of the company's generation capacity.
The family-run organisation ranks a distant second to Manila Electric Co. , but plans to invest between 15-20 billion pesos ($330-444 million) in the power sector over the next three years.
posted by OlongapoCity Zambales at
9:01 AM
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