Aboitiz pays $260.8 M balance for Tiwi-Makban facilities

Aboitiz Power Corporation has paid the PSALM US$260.89 million covering the 60 percent balance for Tiwi-Makban geothermal facilities deal. The purchase was made through APC's wholly-owned subsidiary AP Renewables, Inc.

In May, APRI paid PSALM US$178.4 million representing the 40 percent down payment to the purchase price stipulated in the Asset Purchase Agreement as a precondition to the turnover of the Tiwi-Makban geothermal facilities.

The 60 percent balance was paid ahead of time since the terms of the Asset Purchase Agreement indicated that APRI is to pay over a period of seven years in fourteen equal semi-annual installments.

The complex is composed of the 289-MW Tiwi plants in Albay and the 458-MW Makban facilities in Laguna and Batangas.

The bid for both power facilities covers their generating assets consisting of structures and improvements, spare parts, and general plant equipment.

APRI won the competitive bid conducted by PSALM for the sale of the Tiwi-Makban geothermal facilities on 30 July 2008. The Tiwi-MakBan geothermal facilities have a sustainable capacity of approximately 462 megawatts.