Company Profile
SUBIC ENERZONE CORPORATION (SEZ)
Subic EnerZone Corporation (SEZ) is a privately owned electric distribution utility, managing the power distribution system (PDS) of Subic Bay Metropolitan Authority (SBMA). The company was incorporated on June 3, 2003 and started its commercial operations on October 25, 2003.
On May 15, 2003, the SBMA, Aboitiz Equity Ventures (AEV), and Davao Light and Power Company (DLPC) entered into a Distribution Management Services Agreement (DMSA) for the privatization of the SBMA's PDS. The DMSA, which covers a period of 25 years, is comprised of two phases:
(a) the 5-year rehabilitation period; and
(b) the 20-year operation, management, and maintenance period.
Initially, a joint venture between AEV and DLPC, SEZ won the bid for the privatization of the SBMA's PDS on a rehabilitate-operate-transfer (ROT) scheme in 2003. AEV had a 60% stake in the partnership while DLPC held the rest.
Aboitiz Power Corporation (AP) has entered into an agreement last December 17, 2008 to buy the 20% equity of Team Philippines Industrial Power II Corporation (formerly Mirant (Phils.) Industrial Power II Corp.) in Subic EnerZone Corporation (SEZ). Together with the 35% equity in SEZ of its subsidiary Davao Light and Power Company, Inc., the present acquisition brings APC’s total equity in SEZ to 100%.
MACTAN ENERZONE CORPORATION (BEZ)
Mactan EnerZone Corporation (MEZ) is an Aboitiz-owned electric distribution utility, managing the power distribution system (PDS) of Mactan Export Processing Zone (MEPZ) 2.
MEZ was incorporated in January 2007 when AboitizLand spun off the power distribution system of its MEPZ II project. The MEPZ II project, which was launched in 1995, is operated by AboitizLand under a BOT agreement entered into with the Mactan-Cebu International Airport Authority (MCIAA).
On June 8, 2007, Aboitiz Power Corporation (AP) entered into an agreement to acquire AboitizLand’s 100% equity stake in MEZ represented by 8,754,443 common shares of MEZ. Pursuant to the agreement, AP acquired AboitizLand’s ownership interest in MEZ valued at Php 609.5 million in exchange for AP’s common shares issued at the initial public offering price of Php 5.80 per share.
MEZ sources its power from NPC pursuant to a Contract to Supply Electric Energy. Under the supply contract, NPC is required to provide power to MEZ up to the amount of contracted load, which is based on the projections provided by MEPZ II locators under their respective Power Service Contracts with MEZ.
BALAMBAN ENERZONE CORPORATION (BEZ)
BEZ was incorporated in January 2007 when Cebu Industrial Park Developers, Inc. (CIPDI), a joint venture between AboitizLand and Tsuneishi Holdings, spun off the power distribution system of the WCIP-SEZ.
WCIP-SEZ is a special economic zone for light and heavy industries owned and operated by CIPDI. The park, which is located in Balamban, Cebu, is home to the shipbuilding and ship repair facilities of THICI as well as the modular fabrication facility of Metaphil International.
On May 4, 2007, CIPDI declared a property dividend to its stockholders in the form of its equity in BEZ. On June 8, 2007, Aboitiz Power Corporation (AP) entered into an agreement to acquire AboitizLand’s 60% equity stake in BEZ represented by 4,301,766 common shares of BEZ. Pursuant to the agreement, AP acquired AboitizLand’s ownership interest in BEZ valued at Php 266.9 million in exchange for AP’s common shares issued at the initial public offering price of Php 5.80 per share.
On March 7, 2008, AP purchased Tsuneishi Holdings’ 40% equity in BEZ for approximately Php 178 million. The acquisition brought AP’s total equity in BEZ to 100%.