Power firm secures $200-M loan for Mindanao project
GENERAL SANTOS CITY, Philippines – The Sarangani Energy Corporation (SEC) on Thursday, December 14, announced the signing of a US$220 million (P9.3 billion) loan agreement to finance its power plant project in Maasim, Sarangani in Mindanao.
The syndicated loan will cover the construction of the first 105-megawatt (MW) power plant of the US$310 million project, the single biggest investment in Sarangani since it was created a province in 1992.
The Alcantara Group and its partner Toyota Tsusho Corporation will cover the rest of the 30% capital requirement as equity investment.
Construction will commence in 2013, according to an earlier statement from the Alcantara Group-controlled power company.
The power plant is expected to go on commercial stream in August 2015.
Construction of the second 105-MW coal-fired power plant is expected to also commence within 18 months.
In June, the Alcantara Group said the contract for the construction has been awarded Korean firm Daelim Industrial Company Ltd.
Alsons Consolidated Resources Inc. (ACR), the publicly-listed holding company of the Alcantara Group, earlier also announced the entry of Toyota Tsusho Corporation (TTC) which acquired 25% equity in the company of Sarangani Energy Corporation (SEC).
TTC is the trading company of the Toyota Group of japan.
ACR chair and chief executive officer Tomas Alcantara the Maasim power plant “will help ease the current power shortage in Mindanao.”
In July, the Energy Regulatory Commission (ERC) approved the power sales agreement between SEC and the South Cotabato II Electric Cooperative (Socoteco II) for the supply of 70 megawatts of base electricity.
SEC has also entered into power supply agreement with two other cooperatives in Davao Province and in Agusan del Sur.
The Socoteco II franchise covers the city of General Santos, the towns of Polomolok and Tupi and the whole of Sarangani.
Socoteco II is among the hardest hit distribution firm when the National Power Corporation (NPC) began curtailing power supply due to declining available capacities.
NPC is only supplying Socoteco II an aggregate of 56 megawatts for this year. Socoteco II has a peak load demand of 105 megawatts prompting the cooperative to purchase short term diesel-fueled power supply from the Aboitiz-owned Therma Marine Inc. Still, most of the franchise areas of Socoteco II are now experiencing 3-hour daily rotational brownouts.
Among the participating banks in the syndicated loan are lead loan arrangers BDO Capital and Investment Corporation and RCBC Capital Corporation with Asia United Bank as co-arranger. The rest are United Coconut Planters Bank (UCPB), Philippine Business Bank (PBB), Planters Development Bank, and Robinsons Bank.
The loan was in peso denomination, according to company sources.
Alsons is among the leading energy producers in Mindanao.
Aside from SEC, it also owns and operates the the 100 MW Western Mindanao Power Corporation (WMPC) bunker-fired power plant in Sangali, Zamboanga City and the Southern Philippines Power Corporation (SPPC) 55 MW bunker-fired power plant in Alabel, Sarangani Province.
In addition, Alcantara Group, through its subsidiary Mapalad Power Corporation (MPC), was granted by the city government of Iligan the right to acquire the non-operational 102 MW Iligan Diesel Plant. - Rappler.com