The power unit of Ayala Corp. said Wednesday it signed a joint venture agreement with a local energy company to build a 405-megawatt coal-fired power plant in Mindanao.
Ayala said wholly-owned subsidiary AC Energy Holdings Inc. signed a deal with Power Partners Ltd. Co. to develop the thermal power plant in Kauswagan, Lanao del Norte.
Power Partners is a private limited partnership engaged in developing and owning power facilities in the Philippines since 2001.
Ayala did not disclose other details of the transaction. Power Partners is one of the project sponsors of the 600-megawatt Mariveles coal-fired power plant in Bataan, where Ayala owns a 17.1-percent stake through GNPower Mariveles Coal Plant Ltd.
The other sponsors of the Mariveles power plant are GN Power Ltd. of the US and Sithe Global Power LLC, a company owned by investors of The Blackstone Group.
The Ayala group is expanding its power generation portfolio to Mindanao, joining the long list of companies exploring opportunities in the island.
Ayala managing director and AC Energy Holdings Inc. president John Eric Francia said the group was “in very advanced stages of development work there.”
“Unfortunately. I cannot disclose at this point, but we do have advance projects in Mindanao,” Francia said.
He said the company would continue with its strategy of pursuing opportunities through joint ventures with established power players.
“We will not reinvent the wheel. There are a lot of projects there already that have been developed by organizations and if of you look at our behavior with our current partnerships whether it be with Sta. Clara, Trans-asia, GN Power, these are all established players that we partner with that will continue to be our strategy,” he said earlier.
Ayala signed a joint venture with Sta. Clara Power Corp. for hydropower projects while it is developing coal projects with Trans-Asia Oil and Energy Development Corp. and GN Power Ltd. The company is also a partner of Northwind Power Development Corp.
Ayala teamed up with Mitsubishi Corp. to form PhilNewEnergy Inc., which is pursuing the construction of solar projects.
“It’s too late in the game to start from scratch so I think that’s an explicit strategy that we’ve taken to look who’s done a lot of the development work already and to partner with them,” Francia said.
Ayala is embarking on power projects around that country that can generate 1,000 MW of capacity in the next five years at a cost of $2.5 billion.
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