Aboitiz Power eyes Indonesia

Philippines? Aboitiz Power Corp. is spending $680 million to expand the capacity of two coal-fired power plants in Cebu and Davao, the company?s top executive said.

Aboitiz Power, one of the top energy producers in the Philippines, is also looking at projects in Indonesia, Vietnam and Myanmar as a part of overseas expansion, the manialstandardtoday.com reported.

The news portal quoted Aboitiz Power president Erramon Aboitiz as saying Thursday the group would add 340 megawatts to the combined 640-MW capacity of the coal power plants in Cebu and Davao in anticipation of rising power demand in Visayas and Mindanao.

The addition of 340-MW capacity would be completed by 2018, according to Aboitiz.

Aboitiz said the company was also looking at Indonesia and other Southeast Asian countries such as Vietnam and Myanmar for possible acquisitions and partnerships in the power sector.

?We are basically looking at Indonesia as possible investment opportunity. But there is nothing firm in the pipeline,? Aboitiz said.

Aboitiz said the company was attracted by opportunities in Indonesia, particularly the expected increase in power demand, its huge population and the rapid growth of the domestic economy.

?We are also very encouraged at the structural change that we see happening in the government. We see the new president is leading himself away from subsidies and is moving towards the true cost of power and fuel. I think that is positive as far as business people are concern,? Aboitiz said. (*)