[ Manila Bulletin Online ] January 16, 2009
Aboitiz Power Corporation (APC) has decided to defer and undertake review of its proposed $ 450-million coal-fired power project in Subic Bay, Zambales due to potential cost changes and demand crunch.
APC president and chief executive officer Erramon Aboitiz told reporters that they plan to review the project’s blueprint by the second quarter of the year; and will re-assess timing of the project’s implementation.
"We decided to hold off (the implementation of) the project," he said, adding that estimates may have changed because of the impact of the global financial crisis.
The 300-megawatt coal plant project’s construction should have started this first quarter; and will be bankrolled partly by the proceeds of its P3.9 billion fixed rate notes issue last year.
As this developed, Aboitiz disclosed that earlier plans of issuing retail bonds of up to P3 billion has the possibility of getting downsized to P2 billion since the fixed-rate notes issue has been oversubscribed.
Key factors that shall be reviewed by Redondo Peninsula Energy Inc., he said, will be demand prospects in the Luzon grid and the cost of equipment and materials. (MMV)
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