PJSLAW advises Ayala Corporation on Coal power plant project

June 30, 2011

AC Energy Holdings, Inc. (formerly Michigan Power Inc.), a wholly owned energy unit of Ayala Corporation (Ayala Corp), entered into a Joint Venture Agreement (JVA) with Trans-Asia Oil and Energy Development Corporation (TA Oil) to develop a 135MW coal-fired thermal power plant in Calaca, Batangas. PJSLAW assisted Ayala Corp on the due diligence review of the proposed project and its investments into the joint venture company, South Luzon Thermal Energy Corporation.

Under the terms of the agreement, Ayala Corp and TA Oil will jointly fund the equity requirements of the JV company and secure financing for the project valued at Php12 Billion. Construction of the new power plant is expected by September and commercial operations would begin in 2014.

The PJSLAW team is headed by Partners Monalisa C. Dimalanta and Roy Enrico C. Santos, and assisted by Cheryll Len M. Valenzuela, Pancho A. Vasquez, Pearl Grace G. Cabali, and Jessica Kristine F. Hilado.