Calaca plant expansion gets P7-billion loan

Manila Bulletin 
By Myrna M. Velasco 
Published: July 4, 2013 
A P7-billion loan facility was secured by project developers Trans-Asia Oil and Energy Development Corporation and AC Energy Holdings of the Ayala group for the expansion venture that will ramp up their Calaca coal pant’s capacity to 270 megawatts.
That will entail the construction of additional unit with the same 135-MW capacity as the first phase. The project’s corporate vehicle is South Luzon Thermal Energy Corporation (SLTEC), a joint venture firm between Trans-Asia and the Ayala group.
The credit facility, according to Trans-Asia’s disclosure to the Philippine Stock Exchange (PSE), was inked with Banco de Oro Unibank Inc.; Security Bank Corporation and Rizal Commercial Banking Corporation.
“Proceeds of the loan will be used to fund the expansion of SLTEC’s power plant currently under construction in Calaca, Batangas,” the listed firm said.
The expansion is  requiring total investment of P13 billion and leaned primarily on project finance arrangement – or the typical 70-percent loan funding and the 30-percent balance being shelled out by equity holders.
The project’s expanded capacity is targeted on-line around 2015 and it will be a useful addition to Luzon grid’s supply, which by that time, may already inch close to precarious conditions.
Several projects have been proposed to be constructed in the grid, but many others are still at preliminary stages of permitting and other phases of project implementations.
The government’s serious attention is being called upon – especially in aiding developers into securing local government permits on power projects – because this is one of the major steps needed to spare the country’s largest power grid from suffering supply crisis beyond the critical 2016 timeframe.
Trans-Asia has turned into a more aggressive player in the power industry following the restructuring of the sector; while the Ayala group is still considered a “newbie” or one that is still establishing technical expertise and acquiring megawatt-capacities in power generation.
Aside from the Calaca coal plant project, Trans-Asia is also pursuing renewable energy developments on the geothermal sphere as well as a 54-MW wind capacity in Guimaras.
The Ayala group, on the other hand, has cornered equities in other power projects including the newly-commissioned 600-megawatt coal plant in Mariveles, Bataan.   source