Philippines' Ayala Corp to invest $2.5-B on power plants

Ayala Corp will beef up its energy portfolio with 1,000 megawatt capacity in the next 5 years for an estimated US$2.5 billion investment.

Out of the US$2.5 billion estimated required investments for these power plants, the group has already earmarked US$500 million as equity investments, according to Ayala Corp managing director Eric Francia.

"The 1,000 MW is our benchmark. If we can exceed that, and if we are fortunate to land some interesting acquisitions, then we can exceed that. But if not, that can be a tall order if it's all going to be greenfield projects," Francia said. "Greenfield" means new power plants.

Francia said they plan to make the energy business a strong contributor in their group profits.

The conglomerate is targeting a balanced portfolio between conventional power systems and renewable energy-based systems, according to Francia.

Francia said that one-fifth of the targeted 1,000 MW is expected to be renewable energy-based projects.

He added that bulk, or about 137.5 MW, are expected to be hydropower projects and will be done in partnership with Sta. Clara Power Corp, which holds several hydropower service contracts in different sites around the country.

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