BY ROGER M. BALANZA
The Aboitiz Power Corporation was expected to start construction of its $546 million 300-megawatt (MW) circulating fluidized-bed coal-fired power-generation facility in Davao.
Aboitiz, through its subsidiary Therma South Inc. (TSI), signed on June 30, 2012 contracts worth $546 million with local and foreign partners to build the power plant in Binugao, Davao City, and Inawayan, Santa Cruz, Davao del Sur.
The project, the single biggest direct investment in the Davao Region, had faced a storm of protests from environmentalist groups over fears of pollution and threats to the Dumoy aquifer, that feeds the need for potable water of Davao City’s 1.5 million people.
Aboitiz had initially planned to siphon water from the underground reservoir, atop which the coal plant would sit, to cool the plant’s system.
But Davao City Vice Mayor Rodrigo Duterte steered the Davao City Council of which he is the presiding officer into endorsing the project.
Duterte said Mindanao, wracked by a power crisis, needed the project.
The vice mayor calmed down the protests by forcing Aboitiz to revise its plan and to source out water from free-flowing wells. spring and rivers and no longer from the underground water reservoir.
In a statement, Aboitiz said the project contractors include Formosa Heavy Industries Corp. and a consortium composed of Black & Veatch and Leighton Contractors (Philippines) Inc. Under the contracts, Formosa Heavy Industries will design, supply and erect the power-block equipment, while the Black & Veatch consortium will perform civil works, as well as engineer, procure and construct the balance of plant systems and facilities.
Site-preparation for the project had been started in April this year by First Balfour Inc.
Commercial operation of the first 150-MW generating unit is targeted on or before March 31, 2015, with commercial operations of the second unit following three months later.
The Therma South power project will generate up to 2,000 direct and indirect jobs during the estimated 37-month construction period.
In the statement, Aboitiz said: “Anticipating tightness in the power supply in Mindanao, AboitizPower is committed to do what it takes to build the Therma South power project at the soonest possible time.”
”We will continue to invest in power-generation projects to support the growth of Mindanao today and in the future,” said Erramon Aboitiz, AboitizPower president and CEO.
“This coal-fired plant will be equipped with state-of-the-art technology that will meet stringent international health, safety and environmental standards to ensure that the facility will have the least adverse impact on the environment and surrounding communities,” Aboitiz said.
“We have a strong track record in adhering to the highest standards of professionalism and integrity in carrying out our responsibilities while developing and operating power-generation facilities, and resolving to advance the well-being of the communities and the environment that they affect,” Aboitiz said.
The Aboitiz contractors come with heavy credentials and track record in the power generation industry.
Black & Veatch will bring considerable international expertise in leading the consortium. In 2011 the company was ranked the number-one engineering company in power-generation services by Engineering News-Record.
“Our focus is to deliver an efficient and world-class power solution in the region that supports this important need for critical energy infrastructure,” said Dr. Hoe Wai Cheong, Asia and MEIEA regions managing director of Black & Veatch’s global energy business.
Leighton Contractors (Philippines) Inc. has had a continuous presence in the country for close to 20 years, and is a subsidiary of leading international contractor Leighton Asia, India and Offshore.
“We are proud to be part of the consortium awarded this project. Leighton has been an integral partner in the development of major building, mining and power projects in the Philippines. We are looking forward to working with AboitizPower to deliver the Therma South power project,” said Boyd Merrett, Leighton Asia, India and Offshore executive general manager for Mongolia, the Philippines and Guam.
The Therma South power project had also been endorsed by the Municipal Council of Santa Cruz, Davao del Sur and granted an environmental compliance certificate by the Department of Environment and Natural Resources through the Environmental Management Bureau.
For nearly 80 years, AboitizPower has been at the forefront of developing and operating power-generating plants using various technologies throughout the country. Aboitiz said the project will provide the Davao area and Mindanao as a whole, with reliable, dependable and competitively priced power, thereby strengthening the region’s position as a destination for business, investment and tourism.
Aboitiz, through its subsidiary Therma South Inc. (TSI), signed on June 30, 2012 contracts worth $546 million with local and foreign partners to build the power plant in Binugao, Davao City, and Inawayan, Santa Cruz, Davao del Sur.
The project, the single biggest direct investment in the Davao Region, had faced a storm of protests from environmentalist groups over fears of pollution and threats to the Dumoy aquifer, that feeds the need for potable water of Davao City’s 1.5 million people.
Aboitiz had initially planned to siphon water from the underground reservoir, atop which the coal plant would sit, to cool the plant’s system.
But Davao City Vice Mayor Rodrigo Duterte steered the Davao City Council of which he is the presiding officer into endorsing the project.
Duterte said Mindanao, wracked by a power crisis, needed the project.
The vice mayor calmed down the protests by forcing Aboitiz to revise its plan and to source out water from free-flowing wells. spring and rivers and no longer from the underground water reservoir.
In a statement, Aboitiz said the project contractors include Formosa Heavy Industries Corp. and a consortium composed of Black & Veatch and Leighton Contractors (Philippines) Inc. Under the contracts, Formosa Heavy Industries will design, supply and erect the power-block equipment, while the Black & Veatch consortium will perform civil works, as well as engineer, procure and construct the balance of plant systems and facilities.
Site-preparation for the project had been started in April this year by First Balfour Inc.
Commercial operation of the first 150-MW generating unit is targeted on or before March 31, 2015, with commercial operations of the second unit following three months later.
The Therma South power project will generate up to 2,000 direct and indirect jobs during the estimated 37-month construction period.
In the statement, Aboitiz said: “Anticipating tightness in the power supply in Mindanao, AboitizPower is committed to do what it takes to build the Therma South power project at the soonest possible time.”
”We will continue to invest in power-generation projects to support the growth of Mindanao today and in the future,” said Erramon Aboitiz, AboitizPower president and CEO.
“This coal-fired plant will be equipped with state-of-the-art technology that will meet stringent international health, safety and environmental standards to ensure that the facility will have the least adverse impact on the environment and surrounding communities,” Aboitiz said.
“We have a strong track record in adhering to the highest standards of professionalism and integrity in carrying out our responsibilities while developing and operating power-generation facilities, and resolving to advance the well-being of the communities and the environment that they affect,” Aboitiz said.
The Aboitiz contractors come with heavy credentials and track record in the power generation industry.
Black & Veatch will bring considerable international expertise in leading the consortium. In 2011 the company was ranked the number-one engineering company in power-generation services by Engineering News-Record.
“Our focus is to deliver an efficient and world-class power solution in the region that supports this important need for critical energy infrastructure,” said Dr. Hoe Wai Cheong, Asia and MEIEA regions managing director of Black & Veatch’s global energy business.
Leighton Contractors (Philippines) Inc. has had a continuous presence in the country for close to 20 years, and is a subsidiary of leading international contractor Leighton Asia, India and Offshore.
“We are proud to be part of the consortium awarded this project. Leighton has been an integral partner in the development of major building, mining and power projects in the Philippines. We are looking forward to working with AboitizPower to deliver the Therma South power project,” said Boyd Merrett, Leighton Asia, India and Offshore executive general manager for Mongolia, the Philippines and Guam.
The Therma South power project had also been endorsed by the Municipal Council of Santa Cruz, Davao del Sur and granted an environmental compliance certificate by the Department of Environment and Natural Resources through the Environmental Management Bureau.
For nearly 80 years, AboitizPower has been at the forefront of developing and operating power-generating plants using various technologies throughout the country. Aboitiz said the project will provide the Davao area and Mindanao as a whole, with reliable, dependable and competitively priced power, thereby strengthening the region’s position as a destination for business, investment and tourism.
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