2007 ANNUAL REPORT Power Corporation - Aboitiz Equity Ventures

and reliable supply of electricity. Expanding the plant will also
be easier and less costly than putting up a greenfield facility,
giving SPI an edge over other power plant developers.
The required systems reserve margin for Mindanao is at least
21%. The plant has an installed capacity of 232 MW and
generates about 1 billion kilowatt-hours of power each year.
This covers about 15 percent of the electricity needs of the
island, which has some 20 million inhabitants. The electricity
generated is supplied to the state-run National Power
Corporation over a period of 25 years.
The plant’s net-generating output of 210 MW has increased the
island’s systems reserve margin from a critical level of 13% prior
to the plant’s operation to a more comfortable level of 24%
after the start of full commercial operations in November 2006.
In 2007, the plant accounted for about 20% of the total
electricity supply to the Mindanao grid. It has contributed
stability and supply reliability necessary to sustain the island’s
promising economic growth and development.
SPI built the plant under a build-operate-transfer (BOT)
arrangement. It enjoys a six-year income tax holiday from the
Board of Investments.
Evonik Steag GmbH specializes in the production of electricity
from coal and renewable sources. As a full-service provider,
it focuses on engineering and consulting skills in the design,
building and operation of ultra-modern power plants
worldwide.
In 2007, the
plant accounted
for about 20%
of Mindanao’s
total electricity
supply and has
contributed
stability and
supply reliability
necessary to
sustain the
island’s promising
economic
growth and
development.
ABOITIZ POWER CORPORATION ANNUAL REPORT 2007 • 45