AC Energy sells 40% stake in 135MW coal-fired plant in Iloilo

AC Energy Holdings Inc., the energy unit of Ayala Corporation, has sold its 40-percent stake in a 135 megawatt (MW) coal-fired power plant in Iloilo to a subsidiary of A Brown Company Inc. in order to focus on its existing power projects. In a disclosure to the Philippine Stock Exchange, Ayala Corporation said AC Energy has sold its 40-percent interest in Palm Concepcion Power Corporation (PCPC) and Panay Consolidated Land Holdings Corporation (PCLHC) in favor of its joint venture partner Palm Thermal Consolidated Holdings Corporation (PTCHC), a wholly-owned subsidiary of A Brown. "ACEHI will be paid its original investment in PCPC and PCLHC. The sale by ACEHI is a result of its strategic decision to focus on other projects imminent in its development pipeline," the company said. In a separate disclosure, A Brown said its wholly-owned subsidiary PTCHC and AC Energy "have agreed on the acquisition by PTCHC of ACEHI’s 40-percent interest in the 135MW Circulating Fluidized Bed Thermal Coal-Fired Power Plant Project in Iloilo." "In light of this development, PTCHC has taken the opportunity to acquire the entire stake of ACEHI," A Brown said.   The groundbreaking of the power plant project was undertaken early this year and PCPC and PCLHC will continue to pursue the project as scheduled.   In September 2012, AC Energy Holdings Inc. signed a memorandum of agreement with A Brown Group to build a 135 MW circulating fluidized bed thermal facility in Iloilo to grow its portfolio. For its power projects, Ayala Corp. earlier said it plans to invest as much as $200 million this year in several key power project, through AC Energy. The Ayala Group has interest in  the P12-billion, 135-megawatt coal facility in Batangas, a joint project with Trans-Asia Oil and Energy Development Corp. through a vehicle company called South Luzon Thermal Energy Corp. The group also has a 17.1-percent interest in GNPower Mariveles Coal Plant Ltd. Co. which has a 600-MW coal facility in Bataan and is set to start commercial operations by May this year. On the renewable side, AC Energy has 50-percent stake in NorthWind Power Development Corp., which owns and operates Southeast Asia’s first commercial wind facility, the 33-MW wind farm in Bangui, Ilocos Norte. The group also has a joint venture with Mitsubishi Corp. of Japan for solar power projects through PhilNewEnergy Inc. which looks at possible projects in Alaminos, Pangasinan, in Misamis Oriental, and in Davao. Ayala Corp. has also partnered with Sta. Clara Power Corp., which holds several service contracts for hydropower projects. — Danessa O. Rivera/BM, GMA News