MANILA, Philippines – The Lopez-led Energy Development Corporation (EDC) has secured another bridge financing facility with two international banks to partly bankroll the expansion of its wind power project in Burgos, Ilocos Norte.
EDC signed a bridge financing facility amounting to $90 million (P3.98 billion) with Australia and New Zealand Banking Group Limited (ANZ) and Mizuho Bank, Ltd,” EDC said Friday, June 27.
The proceeds of the latest facility completes the bridge financing for the 63-megawatt (MW) Phase 2 of the Burgos Wind project.
In its June 17 disclosure, EDC signed separate two-year bridge facilities totaling P2.7 billion ($61.71 million) with the Philippine National Bank (PNB) and Security Bank Corporation to partly finance the construction of Phase 2 of the 150 MW Burgos Wind Farm.
Of the amount, P1.3 billion ($29.71 million) was provided by PNB and P1.4 billion ($32 million) by Security Bank.
The bridge loans will partly fund Phase 2 of the project while EDC secures the project financing.
The company also plans to raise $315 million ($7.2 million) for the wind project but decided to secure bank loans to bridge finance it, which is expanding by 63 megawatts (MW) more from the current 87 MW.
With the financing in place, EDC is on track to complete construction of the 87 MW Phase 1 by the fourth quarter this year and the 63 MW Phase 2 by first quarter of 2015.
To increase power supply in Luzon grid
The Burgos Wind Project covers 686 hectares across barangays Saoit, Poblacion, and Nagsurot in Burgos, Ilocos Norte.
The completion of the project will increase its total generating capacity to 150 MW from 87 MW – making it the largest operating wind farm in the Philippines, generating approximately 365 gigawatt per hour (GWh) annually to supply electricity requirements to over a million households.
The Burgos wind project is expected to help address the power supply situation in the Luzon grid, which needs an additional 4,200 MW in the next 10 years due to the projected 4.5% annual increase in electricity demand.
Apart from the Burgos project, EDC is also pursuing other wind projects in Baloi-Pagudpud, Ilocos Norte, and in Camiguin. – Rappler.com