Aboitiz Power, RP Energy to continue power-plant construction in Subic

Aboitiz Power Corp. and its Taiwanese joint venture partner, Redondo Peninsula Energy Inc. (RP Energy), are now pushing through with the construction of a 300-megawatt coal-fired power plant project in Subic Bay Freeport Zone.

Aboitiz Power told the Philippine Stock Exchange Wednesday that after RP Energy revisited the demand-and-supply situation of power in the Luzon grid, RP Energy said it would be "economical" to continue the project.

"The RP Energy management now believes that the economic environment makes the Subic coal project more feasible," Aboitiz Power said in a regulatory filing.

Earlier, the board of Aboitiz Power deferred the project timetable for this project, saying the impact of the US recession could push back power demand.

Aboitiz Power executive vice president Luis Miguel Aboitiz said RP Energy will source its coal requirements from Indonesia.

"The cost of the project has not been determined because we have not yet signed a contract," Aboitiz said.

The proposed 300-MW coal-fired power plant — which will utilize clean coal technology — will be built on a leased Subic Bay Metropolitan Authority property near the Hanjin Shipbuilding facility.

The coal project was earlier estimated to cost at around $450 million to $500 million. —JE, GMANews.TV