Therma Visayas (TVI), a unit of Aboitiz Power, has awarded an engineering procurement and construction contract to Hyundai Engineering and local firm Galing Power Energy for a new power plant project in Cebu.
Under the contract, signed after two months of negotiations, the two firms will construct the Php41bn ($177.1m) worth 300MW baseload power plant located in Sitio Looc, Brgy. Bato, Toledo City, Cebu.
The plant, which is expected to go online by the third quarter of 2017, will create more than 1,500 new jobs during construction phase and approximately 150 new permanent jobs during its operation.
With the signing of the contract, a limited Notice to Proceed will be issued by TVI for the design engineering and detailed physical data collection in preparation for the power plant construction.
AboitizPower Chief Executive Officer Erramon Aboitiz said that the project ensures adequate and competitively priced baseload power supply for Cebuanos in the island by 2017.
Aboitiz said, "We look forward to working closely on this project with our EPC contractor and the local community to ensure we deliver a quality power plant on time.
"This is a very important project for the Visayas grid."
From 2016 to 2018, the TVI project aims to address the looming power shortfall in the Visayas.
The generating equipment of the plant will comprise two 170MW steam turbines and two circulating fluidised bed (CFB) boilers.