Aboitiz Purchases Geothermal Plants

AP Renewables, Inc. (APRI), a wholly owned subsidiary of Aboitiz Power Corporation (AP), paid today to the Power Sector Assets and Liabilities Management Corporation (PSALM) the P8.29 billion downpayment on the purchase price of the 289 MW Tiwi geothermal power plant facility in Albay and the 458 MW Makiling-Banahaw geothermal power plant facility in Laguna (collectively referred to as the “Tiwi-MakBan geothermal facilities”).

Following the payment, which represents 40% of the purchase price, PSALM is expected to turn over at midnight today the possession and control over the Tiwi-MakBan geothermal facilities. The 60% balance in the purchase price is payable over a period of seven years in fourteen equal semi-annual installments.

APRI won the competitive bid conducted by PSALM for the sale of the Tiwi-MakBan geothermal facilities on July 30, 2008. The Tiwi-MakBan geothermal facilities have a sustainable capacity of approximately 462 MW