COMING closer to fulfilling its commitment to bring in additional capacity in order to meet the growing demand in Subic Bay Freeport, Aboitiz Power Corp.’s (APC) subsidiary Redondo Peninsula Energy Inc. (Redondo Peninsula Energy) has recently issued a letter of award to Formosa Heavy Industries.

Redondo Peninsula Energy is a joint venture owned equally by APC and Taiwan Cogen International Corp., a subsidiary of Taiwan Cogeneration Corp.

In a disclosure to the Philippine Stock Exchange (PSE), APC said Formosa will supply the boiler, steam turbine, generator  and related services to be used for the construction of a 300-megawatt (MW) power plant in Redondo Peninsula, Subic Bay.

The 300-MW power plant is also expandable to its full capacity of 600 MW over time, particularly when more locators come into the free port and require more power supply.

APC said Redondo Peninsula Energy will be required to make a 5-percent down payment of approximately $10 million on or before April 30, 2008.

The award serves to fix the price and delivery time of the equipment in an environment of rising prices and longer delivery periods of raw materials, APC explained.

After receiving the necessary approvals, said APC, the project will start construction this year and is expected to be in operation by 2011.

The project is estimated to cost approximately $500 million, using the thumb rule of $1.5-million to $1.6-million-per-MW cost.

Late last year APC revealed that it is looking at applying for pioneer incentives with the Board of Investments as an option. APC then added that the free-port zone of Subic uses close to 40 MW of power.
APC admitted it  still  has  to look at other offtakers that are preferably nearby.

In July last year, APC announced that it entered into a 50-50 arrangement with Taiwan Cogeneration Inc. for a coal-fired power plant project in Subic.

”There will be a demand for the plant’s output; the demand is there and is actually picking up. The company has observed that growth has really accelerated compared to the previous years and as the economy continues to grow,” APC said.

APART from putting money into the local farm sector, local agricultural producers also pushed for the need to ensure that their efforts to become competitive will not be threatened by the possibility of cheap and subsidized imports competing against their own produce.

PUBLICLY listed technology firm IPVG Corp. aims to increase its funds in a bid to buy more business-process outsourcing (BPO) companies this year, its deputy chairman told the BusinessMirror.

LOCAL sugar producers said  the Philippines is already self-sufficient in sugar as the industry is projected to produce 2.34 million metric tons (MMT) of the commodity for this crop year ending August 31.

EMERGING provinces of China have expressed interests in putting up investments in the Philippines, particu-larly in industrial parks, garments manufacturing, trading and resort development in the country, said the Philippine consulate in Shanghai.

COMING closer to fulfilling its commitment to bring in additional capacity in order to meet the growing demand in Subic Bay Freeport, Aboitiz Power Corp.’s (APC) subsidiary Redondo Peninsula Energy Inc. (Redondo Peninsula Energy) has recently issued a letter of award to Formosa Heavy Industries.

THE PLDT (Philippine Long Distance Telephone Co.) Group unveiled last week a wireless-security solution for business owners that will help them secure their facilities and prevent theft at a fraction of the traditional costs.

AFTER increasing the price of diesel, gasoline and kerosene by as much as P2.50 per liter in March, oil companies have again adjusted the pump price of petroleum products by 50 centavos to reflect the continuous surge of world oil prices.

DAVAO CITY—Business and conventions attracted many of the visitors here and the nearby provinces and outbound travelers have not become the monopoly of urban dwellers nowadays.