Aboitiz Equity Ventures - Aboitiz Power Corporation

Aboitiz Power Corporation

Aboitiz Power

Aboitiz Power Corporation (AP) is a publicly-owned holding company listed with the Philippine Stock Exchange that, through its subsidiaries and affiliates, is a leader in the Philippine hydroelectric power generation industry and has interests in some of the largest privately-owned distribution utilities in the Philippines. Since its incorporation in 1998, AP has accumulated interests in both hydroelectric power generation facilities and in thermal plants.

AP’s hydroelectric power generation facilities include the 175 MW Ambuklao-Binga hydroelectric complex in Benguet, and the 360 MW Magat Plant in Isabela, in Northern Luzon, both joint ventures with SN Power AS of Norway; the 70 MW Bakun Hydro Plant in Ilocos Sur, also in Northern Luzon, in a joint venture with Pacific Hydro Limited of Australia; and 15 mini hydro plants run by Hedcor, Inc., located in Benguet and Davao City, with combined generating capacity of 38.2 MW. In 2007 and the first ten months of 2008, these facilities generated and sold a total attributable energy of 660.1 GWH and 821.5 GWH, respectively.
Aside from being part of the Cebu Energy Development Corporation (CEDC), which is building a 3x82 MW coal plant in Toledo City, AP also owns 50% of the outstanding capital stock of East Asia Utilities Corporation ("EAUC") and 60% of the total outstanding shares of Cebu Private Power Corporation ("CPPC").

EAUC operates a 50 MW Bunker C-fired plant within the Mactan Export Processing Zone I ("MEPZ I") in Mactan Island, Cebu. Since 1997, the EAUC power plant has been the sole provider of power to MEPZ I, delivering reliable and high quality power to meet the stringent requirements of semiconductor firms, electronics manufacturers and other locators within the zone. CPPC, on the other hand, owns and operates a 70 MW Bunker C-fired plant in Cebu City, one of the largest power plants in the island of Cebu, under a Build-Operate-Transfer contract to supply 62 MW of power to VECO. In addition, two of AP's distribution subsidiaries, Davao Light & Power Company Inc. (DLPC) and Cotabato Light & Power Company (CLPC), each operates a Bunker C-fired plant with combined installed capacity of 60 MW used mainly for back-up power. AP also has a 34% equity ownership in STEAG State Power, Inc., owner and operator of a 232MW coal-fired power plant located in the PHIVIDEC Industrial Estate in Misamis Oriental, Northern Mindanao.

Hedcor Sibulan, a wholly owned subsidiary of AP, is currently constructing two run-of-river hydropower generating facilities (the “Sibulan Project”) with combined generating capacity of42.5MW in Santa Cruz, Davao del Sur. The Sibulan Project, which is expected to be completed and commercially operational by the last quarter of 2009, is registered as a clean development mechanism project with the United Nations Framework Convention on Climate Change under the Kyoto Protocol.

Another wholly owned subsidiary, AP Renewables Inc. (APRI), submitted the winning bid of US$447 million for the Tiwi-MakBan geothermal complex auctioned off by the Power Sector Assets and Liabilities Management Corporation (“PSALM”) in July 2008. The acquisition of the geothermal plants, which are located in the provinces of Albay, Laguna and Batangas in Southern Luzon, is expected to close on May 2009 pursuant to the Asset Purchase Agreement with PSALM. The Tiwi-MakBan geothermal complex has a dependable capacity of 462 MW.

AP also owns interests in several distribution utilities in Luzon, Visayas and Mindanao, including the Visayan Electric Company, Inc. and DLPC, which are respectively the second-and third largest privately-owned distribution utilities in the Philippines in terms of both customers and annual GWH sales. The other distribution utilities of AP are CLPC, Subic Enerzone Corporation, Mactan Enerzone Corporation, Balamban Enerzone Corporation and San Fernando Electric Light and Power Co., Inc. For the first ten months of 2008, AP’s distribution companies sold a total attributable energy of 2,601.1 GWH of electricity to approximately 654,341 customers.

AP’s controlling shareholder, Aboitiz Equity Ventures, Inc. (AEV), is a diversified conglomerate that is listed on the Philippine Stock Exchange and has interests in power generation, power distribution, financial services, transportation and food manufacturing. This relationship allows AP to draw on the extensive business networks, local business knowledge, relationships and expertise of AEV’s and the Aboitiz Group’s senior managers to identify growth opportunities at an early stage and to capitalize on such opportunities more decisively.