AC Energy Holdings, a subsidiary of Philippines-based Ayala, has entered into an agreement with A Brown Inc and its shareholders to set up a 135MW coal-fired power plant in the Philippines.
The deal between Palm Consolidated Holdings, Palm Concepcion Power, Panay Consolidated Land, A Brown and AC Energy, will see a power generating facility built in the province of Iloilo at an estimated cost of PHP12.5bn ($299.4m).
The proposed greenfield coal-fired facility is likely to begin commercial operations by 2015, reports the Business Inquirer.
"With the joint venture in place, the power plant is now on track to breaking ground within the fourth quarter of 2012," the company said.
"The corporation has done all the preliminary work and investments over the past two years. The engineering plans are ready, and important regulatory approvals have been secured."
The clean coal facility is expected to help address the anticipated tight power supply situation in the Visayas and Panay grids.
AC Energy and A Brown have also agreed to include in their plan a second 135MW power plant for future development if further capacity is required in Iloilo.
Image: The 135MW coal-fired power plant in Iloilo, Philippines will begin operations in 2015. Photo: courtesy of Uwe Hermann.