ABOITIZ Power Corp. said on Monday its subsidiary Therma Power Inc. (TPI) will rationalize its ownership in two coal-fired power plants in Bataan.
AboitizPower said TPI is streamlining its share ownership structure in GNPower Mariveles Coal Plant Ltd. Co. (GNPower-Mariveles) and GNPower Dinginin Ltd. Co. (GNPower-Dinginin). The restructuring involves the transfer of direct ownership of GNPower-Mariveles and GNPower-Dinginin from the offshore subsidiaries of TPI to TPI and the eventual dissolution and liquidation of the offshore intermediary subsidiaries that own the GNPower-Mariveles and GNPower-Dinginin shares.
As a result, TPI will directly own 66.01-percent partnership interest in GNPower-Mariveles and 50-percent partnership interest in GNPower-Dinginin.
In 2016 Aboitiz completed the purchase of the two coal plants for $1.2 billion. The company said the payment was funded by a combination of internally generated cash and financing from foreign banks.
AboitizPower President and COO Antonio Moraza said the streamlining was done for “simplicity.”
He said earlier that the two GNPower plants are essential in the company’s commitment to securing a balanced energy mix to support the country’s energy security. Also, the coal plants will help the company increase its attributable net sellable capacity to 4,000 megawatt (MW) by 2020.
GNPower-Mariveles is a 604-MW subcritical thermal-power plant which started operations in 2014, while GNPower-Dinginin is a new project consisting of 2×668-MW supercritical thermal power plant.