AES Corp., a U.S.-based power producer, plans to spend almost $2 billion for projects in the Philippines, Chief Executive Officer Andres Gluski said.
The company will spend $1.2 billion to expand the Masinloc coal-fired thermal power plant in Zambales province, Gluski said today in Manila, on the sidelines of U.S. Secretary of Commerce Penny Pritzker’s visit. Arlington, Virginia-based AES will invest in other projects, including energy storage, he said.
“The Masinloc project is very, very attractive,” Gluski said. “The Philippines provides a good point for investment, human capital and financial experts.”
Philippine President Benigno Aquino is seeking investment to resolve the nation’s unstable power supply. Outages in the nation are common during the summer months of April and May and highlight the risk to economic growth.
Electricity consumption surged 50 percent in the 10 years to 2012, more than three times the 16 percent growth rate over that same period for the nation’s generating capacity, according to government data.
Philippine gross domestic product rose 5.7 percent in the first quarter from a year earlier, the weakest pace since 2011.