Wednesday, 3 March 2010

$270-million funding for power project inked

Manila Bulletin

Project sponsors for the 200-megawatt Naga coal-fired power facility have inked $270 million worth of financing deal with lenders to bankroll its completion as targeted next year.

Kepco SPC Power Corporation (KSPC) disclosed the signing of agreements with Export-Import Bank of Korea (KEXIM), Asian Development Bank (ADB) and the syndicate of banks and financial institutions led by Sumitomo Mitsui Banking Corporation for the power project’s financing.

The project is a joint venture between SPC Power Corporation and Korea Electric Power Corporation.

The operation and maintenance (O&M) component of the facility has been awarded to Korean firm East West Power Co. Ltd.

By the time the expanded Naga plant’s capacity be set on stream this 2011, it is expected that Visayas power supply will stabilize for some time. The grid’s next bid for additional capacity then would be 2014.

Part of the capacity of the plant’s two units will be wheeled into Negros-Panay grid to help improve supply situation in these heavily brownout-stricken areas.

Among those in its roster of off-takers (buyers) are: Cebu I Electric Cooperative, Inc. (CEBECO I); Cebu II Electric Cooperative, Inc. (CEBECO II); Negros Oriental I Electric Cooperative, Inc. (NORECO I); Negros Oriental II Electric Cooperative, Inc. (NORECO II); and VMC Rural Electric Service Cooperative, Inc. (VRESCO).

Regulatory approvals pegged the selling rate of KSPC at P4.2511 per kilowatt-hour, but with room for escalation indices relative to foreign exchange rates, fuel prices and international price indices.

The facility, according to project developers, will be equipped with circulating fluidized bed combustion (CFBC) technology to minimize toxic gas emissions and improve efficiency run.

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