Ambuklao plant rehabilitation forges onThursday, July 8, 2010
MANILA, 7 July 2010— AboitizPower Corporation, in a disclosure to the Philippine Stock Exchange, informed that the rehabilitation of the civil and electro-mechanical components of the 75-MW Ambuklao Hydroelectric Power Plant located in Bokod, Benguet is now 75% complete.
However, SN Aboitiz Power-Benguet, Inc. (SNAP-Benguet), owner of the Ambuklao plant, has encountered challenges in completing the plugging of the existing plant headrace tunnel needed to connect a new water intake and tunnel to the turbines for the generation of electricity.
The initial attempt to close the old headrace tunnel using concrete plug has proven difficult due to the unexpected volume of sediments (silt and clay) in the tunnel compounded by the effects of Typhoon Pepeng (international name: Parma).
Instead, SNAP-Benguet will undertake construction of a new extended headrace tunnel to allow water to flow through to the new turbines, and consequently abandon the old tunnel. With the construction of the new headrace tunnel, the Ambuklao plant is expected to be completed by the last quarter of 2011 when all three units are operating, instead of end 2010 as earlier reported.
The 75 MW Ambuklao plant was shut down by National Power Corporation in 1999 due to technical problems, and has not operated since. Upon acquisition of the Ambuklao plant, SNAP-Benguet immediately undertook rehabilitation activities to operate the plant again.
“We have always understood the challenges involved in rehabilitating the Ambuklao plant which has not operated for more than ten years,” SNAP-Benguet Chief Executive Officer Emmanuel V. Rubio said.
“Despite the current challenges, we are committed to restore the Ambuklao plant and enable it to generate at higher capacity. We believe that the construction of a new headrace tunnel will ensure completion of the rehabilitation of the Ambuklao plant,” Mr. Rubio added.
Upon rehabilitation, the Ambuklao plant will have a capacity of 105 MW of renewable energy to significantly augment supply of electrical power to the Luzon Grid.
SNAP-Benguet is a joint venture between SN Power of Norway and AboitizPower. SNAP-Benguet submitted the highest bid of U.S. $325 Million for the acquisition of the Ambuklao plant and the 100-MW Binga Hydroelectric Power Plant also located in Itogon, Benguet. The plants were sold as a package in a public bidding held on November 28, 2007.
AboitizPower was incorporated on February 13, 1998 as a holding company for the Aboitiz Group’s investments in power generation and distribution. Ownership in the company was opened to the public through an Initial Public Offering of its common shares in July 2007.
From a small power distribution network in Mindanao in the 1930s, the Aboitiz Group’s direct and active involvement in the Philippine power sector continues to grow.
Today, AboitizPower and its partners represent the largest private renewable energy producer in the country, with several hydro and geothermal assets in its generation portfolio. It also owns the 2nd and 3rd largest distribution utilities known for their operational efficiency.
The company’s brand promise is Better Solutions, to actively develop and offer effective energy solutions to meet the country’s power demands and build commitment to sustain Earth’s resources. A testament to AboitizPower’s commitment to responsibly power the Philippines is Cleanergy, its brand of clean and renewable energy. By offering Better Solutions through its business and community initiatives, AboitizPower aims to create a Better Future for generations of Filipinos.
For more information, please visit www.aboitizpower.com.
About SN Power
Based in Oslo, Norway, SN Power is a global renewable energy company established in 2002 as a Norwegian limited company owned by Statkraft and Norfund. Statkraft is Norway's public power utility and Europe’s largest generator of renewable energy while Norfund is a leading Norwegian risk capital investor in emerging markets funded by the Norwegian Government. SN Power currently operates hydropower plants in Latin America and Asia and is expanding into Africa through a separate subsidiary.
For more information, please visit http://www.snpowerinvest.com/.
External Relations Manager
Aboitiz Equity Ventures, Inc.
Phone: (6332) 4111753
Phone: (632) 7932863