The Aboitiz-led Therma South Inc. was given the green light by the Philippines' Board of Investments (BoI) as a new developer of a 300 MW coal fired power plant in Davao City.
The BoI said the P24.9bn ($573m) project would create 121 jobs, and more importantly, provide the much-needed additional power supply to the Mindanao grid.
“The plant was designed for baseload application and is intended to supply the electricity requirements of Mindanao. It will use clean technology in its operation and will source its coal requirements from Indonesia,” the BoI said in a statement.
Once it starts commercial operations in January 2015, the Davao coal plant will provide electricity to distribution utilities including Davao Light and Power Corp., Cotabato Light and Power Corp., Davao del Sur Electric Cooperative Inc. and Davao Oriental Electric Cooperative Inc.
The power to be generated will be delivered via the Mindanao grid upon the approval of the Energy Regulatory Commission (ERC).
The coal facility of Therma South will be built on 46 hectares of land and 6.5 hectares of foreshore area. Approximately two-thirds (36.7 hectares) of the land is located at Davao City while the remaining one third (15.3 hectares) at Davao del Sur.
The project site is on the narrow coastal strip of the eastern slope of Mt. Talomo, facing the Davao Gulf. The main plant will be located on the northern portion of the property, with the coal unloading facilities and storage areas located in the southern portion of the said property.