PSIREN

The Aboitizes own or control 18 generation facilities nationwide, comprising a 13% share of the national grid. Its market share in Luzon grew significantly due to the acquisition of privatized NPC plants. Its power generation portfolio includes Philippine Hydropower Corp (mini and small hydro plants), Luzon Hydro Corp and HEDCOR (70MW Bakun Hydro), 113MW Western Mindanao Power Corp, 59MW Southern Philippine Power Corp, 232MW STEAG, 360MW Magat (SNAP), 175MW Ambuklao-Binga (SNAP Benguet), Therma Power-Visayas, Therma Luzon Inc, AP Renewables Inc (APRI).

3.5MW Talomo Hydroelectric Power Plant in Mindanao was the first generation asset sold in March 2004; winner was Hydro Electric Development Corp (HEDCOR), an Aboitiz subsidiary. SN Aboitiz Power Inc (SNAP) won Magat hydro with a bid of US$530M in December 2006, topping the US$420.9M bid of the Lopezes’ First Generation Northern Energy Corp. SN Aboitiz Power Benguet (SNAP Benguet) won the Ambuklao-Binga complex — the country's first and second hydroelectric power plants, respectively – in November 2007, with an offer of US$325M. The Tiwi-Makban complex became the first steam-powered structures to be successfully sold in July 2008. AP Renewables Inc. (APRI) of the Aboitiz group won with an offer of US$446.9M; plant turnover was held in May 2009.

The 70MW Bakun Hydroelectric is the first hydroelectric power facility under the BOT program of NPC; the site is on the Bakun River in the Cordillera Central mountains about 250km north of Manila. The Aboitiz’ HEDCOR holds the O&M contract for Bakun which is owned by Luzon Hydro Corporation, a 50:50 joint venture between Aboitiz Power and Australia's Pacific Hydro. The 30MW Northern Mini-Hydro is located in Bakun (Benguet), Northern plant is operated by HEDCOR under a BOO-EPSA contract until 2018.

? AEV/APC – Aboitiz Equity Ventures (AEV) is the holding company for the power generation and distribution businesses of the Aboitiz Group, one of the largest conglomerates in the country, owned and controlled by the Aboitiz family, originally based in Cebu (Visayas). AEV’s core businesses, conducted through its various subsidiaries and associates, can be grouped into four main categories: (i) power distribution and generation through Aboitiz Power Corp (APC) which contributes the largest share of the group’s revenues; (ii) financial services; (iii) food manufacturing; and (iv) transport. On March 7, 2008, the Company purchased 40% interest in Tsuneishi Holdings (Cebu), Inc.

? SNAP – SN Aboitiz Power (SNAP) and SNAP Benguet (SNAPB), the Aboitizes’ tie-up with Norway’s SN Power, resulted in the acquisition of 360MW Magat and 175MW Ambuklao-Binga hydroelectric plants. SN Power was established in 2002 as a 50:50 joint venture between Statkraft, the Norwegian state-owned power company, and Norfund, the state-owned Norwegian investment fund. SN Power aims to develop, build, acquire, own and operate environmentally friendly hydropower assets in Latin America, Asia and Africa on commercial terms.

? HEDCOR – HEDCOR is an Aboitiz subsidiary and is the largest developer of run-of-river small hydro power plants in the Philippines with a total installed capacity of 113 MW. It also holds the O&M contract for the 70MW Bakun hydroelectric plant, owned by the Luzon Hydro Corp, a 50:50 joint venture between Aboitiz Power and Australia's Pacific Hydro.

? Distribution – AEV is the country's second largest power distributor, owning or with controlling interests in 7 distribution utilities nationwide: Visayan Electric Co (VECO), Davao Light and Power Co, Cotabato Light and Power Co, San Fernando Electric Light & Power Co, and Subic Enerzone Corp, Mactan Enerzone Corp, Balamban Enerzone Corp.

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FROM:
The Aboitiz Group in Philippine Power Sector
By Violeta P. Corral, PSIRU-Asia www.psiru.org, July 2009