Two firms express interest in Aseagas

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.