By BusinessMirror - May 10, 2017
THE Sarangani Energy Corp. (SEC), a subsidiary of Alsons Consolidated Resources Inc. (ACR), signed a P10.5-billion syndicated loan with a consortium of local banks.
Proceeds of the loan will be used to finance ongoing construction of the second 105-megawatt (MW) section of SEC’s 210-MW coal-fired baseload power plant in Maasim, Sarangani province.
The loan facility, which has a 13.5-year tenor, including a 3.5-year grace period on principal repayment, was signed by SEC and a consortium of local banks, comprised of BDO Universal Bank (BDO), Asia United Bank (AUB), Rizal Commercial Banking Corp. (RCBC), United Coconut Planters Bank (UCPB), Philippine Business Bank, China Bank Savings and Robinsons Bank Corp.
BDO Capital and Investment Corp., RCBC Capital Corp., AUB and UCPB are the joint lead arrangers for the loan.
The SEC plant’s first 105-MW section began commercial operations in April 2016, providing much-needed baseload power to over 3 million people residing in Sarangani province, General Santos City, Iligan City, Compostela Valley, Agusan del Norte, Agusan del Sur and other major population centers of Mindanao.
Construction of the SEC plant’s second 105-MW section began in January 2017. Upon its targeted completion in the first half of 2019, SEC Section 2 is set to contribute another 105 MW of baseload power to benefit an additional 3 million residents of South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and other key areas of Mindanao.
At a cost of nearly $600 million, the SEC power plant is the single largest investment in Sarangani province and the entire Region 12.
ACR—the publicly listed company of the Alcantara Group and Mindanao’s first and most experienced independent power producer—holds 75- percent equity in SEC with Toyota Tsusho Corp. (TTC)—the trading company of the Toyota Group, owning 25-percent equity in SEC.
Aside from SEC, ACR operates three diesel-power facilities: the 103-MW Mapalad Power Corp. diesel plant in Iligan City, the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani; and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City.
ACR expects this year to begin construction of the 15-MW Siguil River run-of-river hydroelectric plant in Maasim, Sarangani; and the 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Talisayan, Zamboanga City.
The 15-MW Siguil run-of-river power plant will be ACR’s first renewable-energy venture. The company plans to develop other run-of-river hydropower projects with a total potential capacity of 185 MW in different places in Mindanao and Negros Occidental.
The 105-MW SRPI plant is projected to begin operating in late 2020 to provide baseload power to Zamboanga City and other key areas in Mindanao.
ACR-affiliated power facilities are expected to have a total generating capacity of 588 MW by 2020. This capacity will fulfill more than 25 percent of Mindanao’s projected peak-power demand for that year.