AES and its 8% minority partner International Finance Corporation, have paid 100% of the purchase price upfront to complete the Masinloc transaction.
The total project cost is estimated at $1.06 billion, including transaction costs and completion of a planned upgrade program to improve environmental and operational performance.
Approximately 60% of the electricity generated at the Masinloc plant will be sold to electricity distribution companies, co-operatives and special economic zones via power supply contracts of various tenors. The remaining capacity will be sold through the wholesale power pool or under new contracts.
Paul Hanrahan, AES president and CEO, said: This is a particularly attractive investment because the existing facility has the infrastructure in place to allow AES to add an additional 600MW of generation capacity. As AES has done through similar acquisitions in other parts of the world, we expect to improve the overall efficiency and output of the existing plant, providing more reliable energy to the Philippine market.
