AC Energy Holdings, an affiliate of Ayala, has formed a joint venture with Trans-Asia Oil and Energy Development to build and operate a 135MW thermal power plant in Batangas, the Philippines.

The PHP12bn ($275m) project will be equipped with circulating fluidised bed boiler technology and can run on coal and other fuels.

The project, to be funded by both debt and equity, is expected to commence commercial operations by 2014.

ING Bank acted as the financial advisor for Trans-Asia in the transaction.