Aboitiz, partner to infuse $500 M in Subic project

Philippine Daily Inquirer – Abigail L. Ho

Aboitiz Power Corp. And Partner Taiwan Cogen International Corp. Will be investing about $500 million in a coal-fired power plant to be constructed in Redondo Peninusla, Subic Bay starting this year.

In a disclosure to the Philippine Stock Exchange, Aboitiz Power assistant corporate secretary Joseph Trillana Gonzales said the joint venture, Redondo Peninsula Energy In., aimed to commission the 300-megawatt generation facility by 2011.

Redondo Peninsula Energy had awarded to Formosa Heavy Industries the contract for the supply of hte boiler, steam turbine, generator and related services to be used in the construction of the power plant, he said.

The joint venture would be making a 5 percent down payment to the project contractor on or before month’s end.

Taiwan Cogen in July 2006 signed a memorandum of understanding with the Subic Bay Metropolitan Authority to reserve for two years a 20-hectare lot to be used as the site for the proposed plant and another 10-ha lot to be used as an ash pond.

These parcels of lng would be leased for $3.50 per square meter for 50 years.