The deal will allow Aboitiz to purchase indirect partnership interests in GNPower Mariveles coal-fired power plant (GMCP) and GNPower Dinginin
Commissioned in 2014, the GMCP is a subcritical coal-fired power plant with generation capacity of 604MW.
The GNPD is a 2x668MW supercritical coal-fired power plant being built in Bataan. The first unit of the GNPD is scheduled to be commissioned in 2019.
Aboitiz expects to fund the proposed acquisition by a combination of internally generated cash and financing from foreign banks.
Upon completion of the deal, Therma Power will have 66.1% stake in GMCP and 40% in GNPD.
AboitizPower said that the deal is part of its effort to increase its attributable net sellable capacity to 4,000MW by 2020.
AboitizPower CEO Erramon Aboitiz said: “We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion.
“We are likewise looking forward to the completion of our pipeline projects, which include more baseload capacity as well as renewable.”
The transaction is subject to the approval of the Philippine Competition Commission and the Board of Investments.
Image: The GNPower Mariveles coal-fired power plant in the Philippines. Photo: courtesy of Aboitiz Power Corporation.
