Aboitiz Power with $500m investment earmarked for projects in Southeast Asia
With big developments in the Philippines, Aboitiz Power is earmarking $500 million investments into power projects in Indonesia, Vietnam and Myanmar to guarantee future growth and better returns.
Bloomberg reports today, that Philippines-based Aboitiz Power Corp. intends expand in Southeast Asia.
With an estimated development investment of up to $4.5 billion for up to 1,600 MW in power generation capacity in the Philippines, the company sees an oversupply at home in the coming years. Now Aboitiz Power is planning to build power plants in Indonesia and is exploring opportunities in Vietnam and Myanmar, earmarking up to $500 million in investment in the next 5 years according to CEO Erramon Aboitiz, so Bloomberg. The overall target for the company is to reach a total power generation capacity of 4,000 MW in the Philippines by 202o.
Strategically, Aboitiz sees an advantage of staying “close to home” and therefore Indonesia, Vietnam and Myanmar are good opportunities.
According to an analyst in Manila, foreign markets currently provide better project returns than those in the Philippines. At the same time these economies are in dire need of power and infrastructure projects.