Aboitiz Power Corporation

Aboitiz Power Corporation (AboitizPower) is a publicly-owned holding company listed with the Philippine Stock Exchange that, through its subsidiaries and affiliates, is one of the leading players in the Philippine power industry.

Aboitiz Power’s hydroelectric power generation facilities include the 175-MW Ambuklao-Binga hydroelectric complex in Benguet, and the 360-MW Magat Plant in Isabela, in Northern Luzon, both joint ventures with SN Power AS of Norway; the 70-MW Bakun Hydro Plant in Ilocos Sur, also in Northern Luzon, in a joint venture with Pacific Hydro Limited of Australia; and 15 mini-hydro plants run by Hedcor, Inc., located in Benguet and Davao City, with a combined generating capacity of 38 MW.

Aside from an ownership interest in Cebu Energy Development Corporation (CEDC), which owns and operates a 246-MW coal-fired plant in Toledo City, Cebu, which is expected to enter commercial operations in stages throughout 2010, AboitizPower also owns 50% of the outstanding capital stock of East Asia Utilities Corporation (EAUC) and 60% of the total outstanding shares of Cebu Private Power Corporation (CPPC).

EAUC operates a 50-MW Bunker C-fired plant within the Mactan Export Processing Zone I (MEPZ 1) in Mactan Island, Cebu. Since 1997, the EAUC power plant has been the sole provider of power to MEPZ 1, delivering reliable and high quality power to meet the stringent requirements of semiconductor firms, electronics manufacturers and other locators within the zone. CPPC, on the other hand, owns and operates a 70-MW Bunker C-fired plant in Cebu City, one of the largest power plants in the island of Cebu, under a Build-Operate-Transfer contract to supply 62 MW of power to VECO. In addition, two of AboitizPower’s distribution subsidiaries, Davao Light & Power Company Inc. (DLPC) and Cotabato Light & Power Company (CLPC), each operates a Bunker C-fired plant with combined installed capacity of 60 MW used mainly for back-up power. AboitizPower also has a 34% equity ownership in STEAG State Power, Inc., owner and operator of a 232-MW coal-fired power plant located in the PHIVIDEC Industrial Estate in Misamis Oriental, Northern Mindanao. Meanwhile, AboitizPower, through wholly-owned Therma Luzon, Inc. (TLI) assumed dispatch control of the 700-MW Pagbilao plant located in Quezon province in southern Luzon. The facility is a coal-fired plant commissioned in 1996. TLI won the bid to be appointed as the IPP Administrator of the plant in August 2009. As administrator, Therma Luzon is responsible for procuring the plant’s fuel requirements, dispatch and sale of the electricity it generates.

Hedcor Sibulan, a wholly owned subsidiary of AbotizPower, is currently constructing two run-of-river hydropower generating facilities (the Sibulan Project) with combined generating capacity of 42.5MW in Santa Cruz, Davao del Sur. The Sibulan Project, which is expected to be completed and commercially operational by May 2010, is registered as a clean development mechanism project with the United Nations Framework Convention on Climate Change under the Kyoto Protocol.

Another wholly owned subsidiary, AP Renewables Inc. (APRI), submitted the winning bid of US$447 million for the Tiwi-MakBan geothermal complex auctioned off by the Power Sector Assets and Liabilities Management Corporation (PSALM) in July 2008. The Tiwi-MakBan geothermal complex recorded a peak generation of 467 MW in 2009.

AbotizPower also owns interests in several distribution utilities in Luzon, Visayas and Mindanao, including the Visayan Electric Company, Inc. and Davao Light and Power Corporation, which are respectively the second-and third largest privately-owned distribution utilities in the Philippines in terms of both customers and annual GWh sales. The other distribution utilities of AboitizPower are Cotabato Light and Power Company, Subic Enerzone Corporation, Mactan Enerzone Corporation, Balamban Enerzone Corporation and San Fernando Electric Light and Power Company, Inc. In 2009, AboitizPower’s distribution companies sold a total attributable energy of 3,322 GWh of electricity to approximately 685,000 customers.

AbotizPower’s controlling shareholder, Aboitiz Equity Ventures, Inc. (AEV), is a diversified conglomerate that is listed on the Philippine Stock Exchange and has interests in power generation, power distribution, financial services, transportation and food manufacturing. This relationship allows AboitizPower to draw on the extensive business networks, local business knowledge, relationships and expertise of AEV’s and the Aboitiz Group’s senior managers to identify growth opportunities at an early stage and to capitalize on such opportunities more decisively.