AboitizPower: Philippines energy sector already competitive

AboitizPower: Philippines energy sector already competitive

AS telecommunications companies are agreeable to the entry of foreign
players, a key player in the power industry believes the Philippine energy
business is already being participated in by a wide group of foreign
players.

AboitizPower president and chief operating officer Antonio Moraza, in a
statement, said the Philippine power industry is one of the "most
competitive in the region."
"The Philippine power industry is already open to foreign players. We are
one of the most competitive in the country, with about 100 registered
generators in the market, represented by Korea, US, Thailand, and Japan as
investors and owners," Moraza said.

The statement came in response to a pronouncement of President Duterte last
week that he will open up the communications and energy sector.

"My decision now is, I will open up the Philippines. Or else you can count
with your fingers in one hand, the power players of this country. I would
not say that you are the elite because it would (have) another connotation,"
Duterte said in his speech at the Davao International Airport upon arrival
from New Zealand.
The President said the government is looking into "regulatory requirements
and institutional arrangements to hasten the entry of new players in the
power industry and energy sector."

Executives of Globe and PLDT were also quoted in separate statements that
they welcome any foreign development in the Philippine telco industry.

Under the 1987 Philippine Constitution, only companies owned by Philippine
nationals or corporations, by at least 60 percent, may operate as a public
utility.
AboitizPower has 16 subsidiaries to date engaged in power generation and
distribution.

The company holds all its investments in renewable energy through Aboitiz
Renewables, Inc. (ARI) and non-renewable energy through Therma Power, Inc.
(TPI) with both ARI and TPI being wholly-owned subsidiaries.

Since last year, AboitizPower said in a disclosure that it established a
wholly-owned, Singapore-based subsidiary, AboitizPower International Pte.
Ltd. (APIPL), which entered into an agreement with PT Medco Power Indonesia
to participate in the exploration and development of a potential two
55-Megawatt greenfield geothermal plant in East Java province in Indonesia.

On Sept. 25, 2015, APIPL also entered into an agreement with SN Power AS and
PT Energy Infranusantara to participate in the feasibility studies for the
exploration and development of a potential 127 MW hydropower generation
project along the Lariang River in Central Sulawesi, Indonesia.

Nevertheless, Duterte said that should telco and power players manage bring
down electricity and communication costs, he "will forget" what he said.

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Link to Original Article:
http://www.sunstar.com.ph/cebu/business/2016/11/29/aboitizpower-ph-energy-se
ctor-already-competitive-512329

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com