Pacific Hydro sells stake in joint venture in the Philippines to focus on Australia and South America
1 April 2011
Leading renewable energy company Pacific Hydro today announced it has entered into a Memorandum of Agreement (“MOA”) with Aboitiz Power Corp. (“AboitizPower”) to sell its 50 per cent stake in the Luzon Hydro Corp. (“LHC”) joint venture, which owns and operates the 70-megawatt Bakun Hydro run-of-river hydro power plant in northern Luzon, in the Philippines.
AboitizPower, which currently owns the other 50 per cent of the plant, will assume full ownership of LHC upon completion of the transaction and fulfillment of certain conditions in the MOA.
Commenting on the transaction, Pacific Hydro chief executive officer Rob Grant said that the sale was part of the company’s strategy to focus on its core markets; Australia and South America.
“Pacific Hydro has a clear strategy to identify, deliver and operate clean energy projects in Australia, Brazil and Chile”, he said. “The development and operation of the Bakun Hydro plant was one of our finest achievements and demonstrated our ability to deliver projects in challenging geographic locations. This experience has been invaluable in subsequent projects such as the recently completed 310 MW La Higuera and La Confluencia run-of-river hydro power stations in Chile.”
AboitizPower subsidiary, Hedcor, and Pacific Hydro started the development of the Bakun Hydro plant in 1996 and it subsequently entered into commercial production in 2001 under a 25-year PPA agreement with the Philippine’s National Power Corporation.
Pacific Hydro has in excess of 3,000 megawatts of renewable energy projects at varying stages of development, construction and operations in Australia, Brazil and Chile. The company’s current operating wind farms and hydro plants abate an estimated 1.5 million tonnes of greenhouse gas pollution every year.
In Australia, Pacific Hydro has a pipeline of around AU$2 billion of clean energy projects and is a consortium member shortlisted for a large scale solar project under the Solar Flagships program. The company owns and operates six wind farms across Victoria and South Australia along with hydro projects including the Ord River project, in Western Australia.