AboitizPower Corp will invest PHP25bn ($586.3m) to build a coal-fired power plant in southern Davao, Philippines.

Aboitiz’s subsidiary Therma South will deliver the project which will cater to the regions power supply need.

The proposed plant will be equipped with circulating fluidized bed coal combustion technology and is due for completion in 2014.

The government estimates that unless power generation is increased soon, Mindanao will soon face power shortages.

The region is expected to face extreme shortage of 480 MW mainly in the cities of Davao, Cagayan de Oro, General Santos, Zamboanga and Butuan, according to abs-cbnnews.com.