Tuesday, 26 May 2009

Philippines sells geothermal plant to Aboitiz

PGMA witnesses award of Tiwi-Makban geothermal plants to Aboitiz in Makati

President Gloria Macapagal Arroyo today (May 25) led national government officials in witnessing the turnover of the Tiwi- Makban geothermal plants by the Department of Energy (DOE) to the Aboitiz Power Renewables Inc. held at the office of the Power Sector Assets and Liabilities Management Corp. (PSALM) in Makati City.

Also present during the awarding ceremony was Finance Secretary Margarito Teves and Energy Secretary Angelo Reyes and Jose Ibazeta, CEO of PSALM, the privatization agency for assets and liabilities of the National Power Corp (NPC).

The Tiwi Geothermal Power Plant in Tiwi, Albay (Bicol region) is situated approximately 559 kilometers southeast of Manila and north of the Mayon Volcano.

The MakBan (which stands for Makiling and Banahaw) plant is located 70 kilometers southeast of Manila in the provinces of Laguna and Batangas and is situated in two non-active volcanoes—Mt. Makiling and Mt. Banahaw.

The plant was bought by Aboitiz, who was represented by Luis Miguel Aboitiz during the turnover, for $446.9 million, with 40 percent down payment, or P8.2 billion.

Aboitiz will also pay in full the lease rentals on the property of P492 million, Reyes said.

He added that the Tiwi MakBan plant is the first geothermal plant that had been sold by PSALM.

Relying more on renewable energy sources will help the country reduce its dependence on imported fuel and save foreign exchange, in addition to leading the way to cleaner energy.

The Aboitizes bought the plants.

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