SUWECO Seeking P4-B Project Financing

Manila Bulletin

By Myrna M. Velasco

January 27, 2013, 8:19pm

Renewable energy project developer Sunwest Water and Electric Company Inc. (SUWECO) is currently securing syndicated loan of up to P4 billion through the Investment Capital Corporation of the Philippines (ICCP) to bankroll the implementation of at least four of the multitudes of its proposed small-scale power projects.

According to SUWECO president Jose Silvestre M. Natividad, these projects will be hydro developments of 15 megawatts in main Aklan; 6.0MW in Pinacanauan in Cagayan province; 9.4MW of the Villasiga cascade project in Antique; and 1.5MW Bansud project in Oriental Mindoro.

He explained that the credit facility being secured will account for 70 percent of their requirement to move the proposed facilities into implementation – and which is also the typical arrangement for project financing.

SUWECO vice president Annette M. Rafael has indicated that around seven banks have expressed interest to extend funding for their projects. These include the Land Bank of the Philippines; Security Bank; Veterans Bank; Development Bank of the Philippines; BDO; China Bank and the Philippine Bank of Communications.

Of the 57 projects in the company’s roster, the one that may be completed first is the P1.4 billion Villasiga hydropower plant with 8.0MW capacity. It is expected on stream around July this year and will likely be among the projects to benefit from the feed-in-tariff (FIT) system bequeathed to RE projects.

“Our development plan is up to 2020,” Natividad said, adding that the portfolio will generally be RE-based, with priority focus on hydro and to be mixed with solar and wind developments.

The 57 to 59 projects in the company’s investment blueprint will bring it aggregate capacity of roughly 273MW to 280MW when all facilities will be successfully set on stream.

Natividad noted that the company’s appetite for ventures into power generation was reinforced after achieving commercial success at its initial forays into hydropower development via the 2.3MW Solong and 1.5-MW Hitoma facilities in Catanduanes.

He admitted that their way forward will not necessarily be all FIT-supported because they are also seriously mulling prospects of offering their capacities via bilateral contracts to interested distribution utilities as well as trading options at the Wholesale Electricity Spot Market.

The wind and solar prospects of the company that may reach up to 60 megawatts are expected to complement their targeted hydro capacities.

In its list are 52MW of wind potential along seven areas in Albay, Sorsogon, Antique and Romblon; and 7.0MW prospect of solar in at least five areas in Albay.   source