Two firms ex­press in­ter­est in Asea­gas

Manila Times - - Corporate News - JORDEENE B. LAGARE

TWO en­ti­ties have ex­pressed their in­ter­est for AboitizPower Corp.’s 8.8-megawatt (MW) biomass power plant in Lian, Batan­gas which the listed firm closed ear­lier this year.

One is a lo­cal com­pany and the other is a for­eign en­tity look­ing for a part­ner­ship with a lo­cal firm, AboitizPower Chief Op­er­at­ing Of­fi­cer Em­manuel Ru­bio told re­porters.

“We’re talk­ing to two in­ter­ested par­ties at the mo­ment,” Ru­bio said.

AboitizPower is cur­rently re­view­ing the draft pro­pos­als and agree­ments sub­mit­ted by the two in­ter­ested com­pa­nies. One of the in­ter­ested firms plans to con­duct due dili­gence on the biomass fa­cil­ity.

The power com­pany is look­ing at ei­ther sell­ing the Asea­gas plant or re­sum­ing its op­er­a­tions.

In Jan­uary this year, AboitizPower an­nounced its de­ci­sion to per­ma­nently cease op­er­a­tions of the biomass power plant in Batan­gas which had been on an ex­tended shut­down prior to its clo­sure. It had ear­lier sus­pended the plant’s com­mis­sion­ing due to the un­avail­abil­ity of the sup­ply of or­ganic ef­flu­ent waste­water from its sup­plier, Ab­so­lut Dis­tillers, Inc.

AboitizPower had as­sessed the plant’s other is­sues and de­cided to close it fol­low­ing a full as­sess­ment.

“Our top con­sid­er­a­tion now is to bal­ance the in­ter­ests of all our stake­hold­ers, in­clud­ing that of Asea­gas’ em­ploy­ees,” An­to­nio Mo­raza, the firm’s pres­i­dent and chief ex­ec­u­tive of­fi­cer at that time, said in a state­ment. Mo­raza re­lin­quished his post on Au­gust 31.

De­spite the shut­down, Mo­raza said AboitizPower re­mains on track to achieve its 4,000-MW net at­trib­ut­able ca­pac­ity tar­get by 2020.

“AboitizPower is still on track to add some 500MW of at­trib­ut­able ca­pac­ity, mainly from baseload and hy­dropower plants in 2018, push­ing the com­pany closer to its 2020 tar­get of 4,000-MW net at­trib­ut­able ca­pac­ity,” he added.

Asea­gas had ear­lier pre­paid its out­stand­ing loan with the De­vel­op­ment Bank of the Philip­pines (DBP) amount­ing to P2.368 bil­lion.

“To­tal value af­fected as a re­sult of the clo­sure is es­ti­mated to be at P3.7 bil­lion, which rep­re­sents Asea­gas’ in­vested eq­uity of P3.45 bil­lion and the com­pany’s es­ti­mated re­main­ing obli­ga­tions of around P250 mil­lion,” AboitizPower said.

Asea­gas is a wholly-owned sub­sidiary of AboitizPower through Aboitiz Re­new­ables, Inc., which holds its in­vest­ments in re­new­able en­ergy.

AboitizPower is the hold­ing com­pany for the Aboitiz Group’s in­vest­ments in power gen­er­a­tion, dis­tri­bu­tion, and re­tail elec­tric­ity ser­vices.

Shares of AboitizPower fell P0.15 or 0.41 per­cent to P36.75 each on Fri­day.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.