Sarangani Energy signs P9.3-B loan facility for power project

Business Mirror

Published on Thursday, 13 December 2012 19:20

Written by Paul Anthony A. Isla / Reporter

LISTED Alsons Consolidated Resources Inc. said on Thursday its subsidiary Sarangani Energy Corp. (SEC) has secured a P9.3-billion syndicated loan to fund the ongoing construction of the first phase of the 210-megawatt (MW) coal-fired power plant in Maasim, Sarangani.

In a disclosure to the Philippine Stock Exchange, Alsons said the first of two coal-fired power plant units will generate 105 MW, which is intended to be part of a long-term solution to the current power shortage in Mindanao.

The first unit of the power plant is expected to begin operations in August 2015.

Alsons said the loan has a 13.5-year tenor including a 3.5-year grace period on principal repayment. The loan agreement was signed by SEC and a group of local banks comprised of BDO Universal Bank, Asia United Bank (AUB), Rizal Commercial Banking Corp. (RCBC), United Coconut Planters Bank, Philippine Business Bank, Planters Development Bank and Robinsons Bank.

Alsons said the joint lead arrangers for the loan are BDO Capital and Investment Corp. and RCBC Capital Corp. with AUB as co-arranger. Alsons, the publicly listed holding company of the Alcantara family holds 75-percent equity in SEC with Toyota Tsusho Corp. (TTC)—the trading company of the Toyota Group—holding the remaining 25-percent equity.

Tomas I. Alcantara, Alsons and SEC chairman and president, said the crucial project will help ease the current power shortage in Mindanao.

Alcantara expressed optimism that Alson’s power project in Zamboanga will also find support from the local banking community. The San Ramon Power Inc. (SRPI) plant in San Ramon, Talisayan, Zamboanga City, will have the capacity to generate 105 MW of electricity for Zamboanga and nearby areas.

The SRPI plant is expected to be operational in 2016.

Aside from having already identified a plant site, Alsons said the project has already obtained an environmental compliance certificate and will be signing an engineering, procurement and construction contract with a prospective contractor and a power sales agreement with a local power cooperative soon.

Aside from the SEC and SRPI facilities, the Alcantara Group controls and operates the 100-MW Western Mindanao Power Corp. bunker-fired power plant in Sangali, Zamboanga City, and the Southern Philippines Power Corp. 55-MW bunker-fired power plant in Alabel, Sarangani.

In the first quarter, the Alcantara Group—through subsidiary Mapalad Power Corp.—was granted by the city government of Iligan the right to acquire the 102-MW Iligan diesel power plant. The transfer of ownership is currently undergoing procedural review by the Commission on Audit.

Alsons said rehabilitation and operation of the Iligan plant will commence once the transfer is finalized.

Apart from power project development and power generation management, the Alcantara Group is also engaged in property development, aquaculture, agribusiness and services. The group has been an active player in the economic development of Mindanao and the rest of the Philippines for more than 50 years.    source