Davao Light and Power Co., a subsidiary of the Aboitiz Group, is preparing at least P1 billion to acquire the assets of Northern Davao Electric Cooperative Inc. (Nordeco) as part of its planned operational takeover.
Company president and COO Enriczar Tia said the amount, as compensation for Nordeco’s assets, is tentative and subject to change pending ongoing negotiations and asset valuation. The acquisition will be internally financed.
Republic Act 12144, which lapsed into law in April, expands Davao Light’s franchise area to include former Nordeco-covered areas such as Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao de Oro. The law also grants Davao Light the power of eminent domain, allowing it to expropriate assets from Nordeco, subject to court approval.
Tia confirmed that due diligence is underway to assess the condition of Nordeco’s assets. A two-year transition period is in place before Davao Light fully takes over operations in the new areas.
A separate budget is also being planned for the rehabilitation and upgrade of Nordeco’s facilities. Tia said resource allocation for upgrades could span the first five years of operations in the newly acquired territories.
Prior to the expansion, Davao Light served Davao City, Panabo City, and nearby municipalities, with over 509,000 customer connections as of August 2025. It is the third-largest power distributor in the country after Meralco and the Visayan Electric Company.
