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Ayala, Phinma form energy joint venture

07/01/2011 [ ]

Ayala Corp. and Phinma Corp. will form a joint venture company through the units of both conglomerates to be called South Luzon Thermal Energy Corp. for the construction and operation of a 135-MW circulating fluidized bed (CFB) thermal power plant in Calaca, Batangas.

Ayala Corp.’s AC Energy Holdings has signed a joint venture agreement with Phinma Corp.’s Trans-Asia to form South Luzon Thermal Energy Corp. which will have an authorized capital of P200 million to be owned by AC Energy Holdings by 50 percent and Trans-Asia also by 50 percent.

The total project cost is expected to reach P12.6 billion and will be financed by a combination of debt and equity. Start of construction will be by September 2011 while it is targeted to be operational by mid-2014.

Phinma Corp. president and Trans-Asia chairman Ramon del Rosario Jr. said the company was glad to be partnering with the Ayala Group in this joint venture project. “We look forward to leveraging each other’s strengths in developing and running a modern and environment-friendly facility that will contribute to the country’s power supply generation through conventional source using clean technology,” he added.

Ayala Corp. president and COO Fernando Zobel de Ayala said the project is part of Ayala Corp’s strategy to build a portfolio of power generation assets that combines conventional and renewable energy sources. “This project will help contribute to building the much needed base load capacity to meet the growing demand for power in Luzon, simultaneous to our efforts to contribute in the development of alternative energy sources,” he added.

Ayala, through AC Energy Holdings, recently formed several joint venture agreements to develop solar and mini-hydro power projects across various sites in the Philippines. It also recently acquired a 50 percent stake in Northwind Power that operates the wind farm in Bangui, Ilocos Norte.

Trans-Asia, through its wholly-owned subsidiary, Trans-Asia Renewable Energy Corp. (TAREC) has aggressively pursued the development of renewable energy and has been awarded service contracts with potential wind capacity of 350 MW, making it one of the largest wind developers in the country today. For its core business, Trans-Asia provides affordable power through the 52 MW power plant of its subsidiary, Trans-Asia Power Generation Corp., and its own 3.4MW power plant in Guimaras. Danessa O. Rivera

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