Loan eyed for hydro plants

Business World Online

Posted on January 27, 2013 09:56:14 PM

 

RENEWABLE ENERGY resource developer Sunwest Water and Electric Co., Inc. (SUWECO) plans to secure a P4-billion loan from a group of local banks to partially finance four mini hydro power plants that will cost a total of about P6 billion, a top company official said over the weekend.

“We are looking at a P4-billion syndicated loan to finance our four projects, and there are already seven interested banks,” SUWECO Chairman Elizaldy S. Co said in a text message.

Mr. Co identified the banks as Land Bank of the Philippines; Development Bank of the Philippines; Philippine Veterans Bank, Security Bank Corp.; BDO Unibank, Inc.; China Banking Corp.; and Philippine Bank of Communications.

“SUWECO tapped the Investment & Capital Corp. of the Philippines as lead arranger of the syndicated loan facility. As the lead arranger, they [sic] will be the one to negotiate with the banks and financiers,” Mr. Co said.

He added that the company expects to close the loan deal “around April or May this year.”

Mr. Co said the loan will partially finance the four projects of the company that are expected to be operational between 2014 and 2015.

“It’s just around 70% because we usually work on a 70-30 financing. The total cost of the four projects is around P6 billion,” he said.

The loan will be used for the construction of the company’s 15-megawatt (MW) Aklan Main in Libacao, Aklan; the 9.4-MW Villasiga 2 in Bugasong, Antique; the 6-MW Pinacanauan in Peñablanca, Cagayan; and the 1.5-MW Bansud in Bansud, Oriental Mindoro.

“Construction of the Aklan Main, Villasiga 2 and Pinacanauan is targeted [to start] in the second quarter of this year,” Mr. Co said.

“The one in Mindoro is already ongoing, so we expect that the mini hydro (plant) in Mindoro will be operational by next year and the others by 2015.”

Earlier this month, SUWECO President Jose Silvestre M. Natividad had said that company’s mini hydro projects are currently under various stages of development, with the 8-MW first plant in Bugasong, Antique (Villasiga 1) in the most advanced stage.

Mr. Natividad said Villasiga 1 -- the first of two units -- is about 85% complete and is expected to start operations by June.

SUWECO, which was incorporated in 2005, currently operates two mini hydro power plants with a total capacity of 3.6 MW in the province of Catanduanes. -- Claire-Ann Marie C. Feliciano   source