by Lenie Lectura – December 15, 2015
from Business Mirror
SAN Buenaventura Power Ltd. Co. (SBPL), a joint venture of Meralco PowerGen Corp. (MGen) and Thailand’s New Growth BV, broke ground last week on its 500-megawatt (MW) supercritical coal-fired power plant in Mauban, Quezon.
SBPL said on Monday that a groundbreaking ceremony was held on December 10, marking the start of the construction of the power plant that will provide the baseload supply needed to serve electricity consumers in Luzon.
This power plant will play a crucial role as electricity demand grows, especially in Luzon, which accounts for about 70 percent of the country’s GDP.
Commercial operation of the power facility is expected to commence in the first half of 2019.
The consortium of Daelim Industrial Co. Ltd. and Mitsubishi Corp. was tapped as the engineering, procurement and construction (EPC) contractor for the project. The notice to proceed to the EPC was issued on December 8.
The electricity generated by the plant will be sold to Meralco, the country’s largest distribution utility, under a 20-year power-supply agreement that was approved by the Energy Regulatory Commission earlier this year.
The tariff of the SBPL plant is one of the most competitive for new capacities expected to come on-stream in the next few years.
The development of this project represents MGen and Egco Group’s commitment to contribute in efforts to attain energy security, which will ultimately benefit the Philippine economy. This is also aligned with MGen’s goal to have a power-generation portfolio of about 3,000 MW and significantly contribute to the growing demand for power.
SBPL entered into an omnibus agreement with a consortium of reputable local banks to provide a P42.15-billion loan for the project.
The company held on November 27 the ceremonial signing for the project funding, which is the biggest all-peso project finance facility in the country to date.
The senior-term loan lenders are BDO Unibank Inc.; China Banking Corp. (Chinabank); Metropolitan Bank & Trust Co. (Metrobank); Philippine National Bank (PNB); and Rizal Commercial Banking Corp (RCBC). BDO Unibank-Trust and Investments Group served as the loan facility agent; while Metrobank-Trust Banking Group acted as collateral trustee.
Meanwhile, BDO Capital and Investment Corp. and First Metro Investment Corp. were appointed as joint bookrunners and joint issue coordinators. Together with Chinabank, PNB Capital and Investment Corp. and RCBC Capital Corp., they also acted as joint lead arrangers for the transaction.