Conglomerate Ayala Corp. continues its forays in Visayas by partnering with a power firm in the construction of coal-fired power plant in Concepcion, Iloilo.
In a disclosure to the Philippines Stock Exchange, Ayala Corp. announced that its energy arm AC Energy Holdings Inc. entered into a memorandum of agreement with A Brown Group to build a 135-megawatt (MW) circulating fluidized bed thermal facility in northern Iloilo.
The proposed greenfield coal-fired facility is targeted to start commercial operations by 2015 to help address the expected tight power supply situation in the Visayas grid in the same year.
Solomon Hermosura, Ayala Corp. managing director, said the partnership with A Brown aims to expand AC Energy’s portfolio in the energy sector.
The Ayala Group is expanding its power-generation portfolio with plans to embark on $2.5 billion worth of power projects and build a portfolio of about 1,000MW over the next five years, through partnerships with more experienced power players.
In another SEC disclosure, A Brown Group said the joint venture with Ayala will pave the way for the groundbreaking of the project this year.
“With the joint venture in place, the power plant is now on track to breaking ground within the fourth quarter of 2012. The corporation has done all the preliminary work and investments over the past two years. The engineering plans are ready, and important regulatory approvals have been secured,” A Brown said.
A Brown vice president Roel Castro said they intend to expand their energy portfolio if Visayas’ demand continues.
“This is a welcome development for Panay, in particular, and the Visayas, in general, as this will ensure the availability of steady, reliable and cheaper power to fuel anticipated growth and development in key areas like Iloilo City, Bacolod City and Boracay. Our commitment to Panay is long-term, as we stand ready to build another 135MW of capacity if there is a need for it,” Castro said.