Philippines' Aboitiz Power sees delay in 300-MW Mindanao project
Aboitiz Power Corp, one of the Philippines' biggest electricity producers, said on Wednesday that a recent blackout in the southern island of Mindanao will delay the start of its 300 megawatt coal-fired power plant project.
Aboitiz said in a statement that the seven-hour Mindanao-wide blackout on April 5 disrupted the commissioning of the second 150-MW unit of the power plant, with commercial operations delayed by 10 months to February 2016.
Commissioning of the plant's first 150-MW unit remains on schedule and should reach commercial operation by the end of June this year, it said.
The plant, to be operated by Aboitiz's Therma South Inc unit, is designed to boost electricity supply to an island that has been suffering for years from rolling brownouts due to inadequate power reserves.
Many of the country's biggest power producers, including San Miguel Corp, Ayala Corp and Manila Electric Co , are planning new capacity in Mindanao, home to the country's biggest nickel mines, some tourist spots, and banana and pineapple plantations supplying Dole Food Co Inc and Del Monte Pacific Ltd.
But most of the projects have yet to be built, raising fears that a potential power crisis could undermine Southeast Asia's fastest-growing economy.
"Initial findings show that the (power) disruption unfortunately caused damage to the auxiliary components to the boiler of Unit 2," Aboitiz said.
The cost of repairs was unclear as Therma South was conducting a more detailed assessment of the extent of the work needed.
The Mindanao Business Council has sought an explanation from the government for the blackout, which the Department of Energy said was caused by the breakdown of an ageing transformer.
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