Joint venture’s P7-billion loan to expand power plant

Business Mirror

Published on Tuesday, 02 July 2013 20:48

Written by Paul Anthony A. Isla

THE owners of the South Luzon Thermal Energy Corp. (SLTEC) power plant currently under construction in Calaca, Batangas, are sinking in P7 billion more to expand its capacity to 270 megawatts (MW) from 135 mW.

SLTEC is a joint venture of the Ayala Corp. (AC)-led AC Energy Holdings Inc. and Trans-Asia Oil and Energy Corp. On Tuesday they signed a P7-billion project-loan facility arranged by Banco de Oro Unibank Inc., Security Bank Corp. and Rizal Commercial Banking Corp.

The information was contained in a disclosure to the Philippine Stock Exchange by Trans-Asia.

Ayala said the project is the second phase of expansion of SLTEC’s Calaca thermal power plant, which is expected to be completed and operational by 2016.

Eric T. Francia, AC managing director, earlier said the company would also expand the 135-mW coal-powered project in Batangas under SLTEC.

“We’re looking across the country. We’re also looking at the Visayas and Mindanao. We know that those two areas need new power plants,” Francia said. “Our plan is to make it [energy business] one of the major [profit] contributors in five to 10 years.”

For the past two years, Ayala has established a robust pipeline of power platforms in the conventional and renewable technologies and committed over $300 million of equity to approximately 900 MW of gross generating capacity. It said it aims to increase its equity commitment to $500 million to $600 million in the next 12 to 18 months.

Ayala has also entered into an agreement to acquire approximately 20-percent stake in GN Power Mariveles Coal Plant Ltd. Co., a 600-mW coal facility in Bataan that will soon start operating. It, likewise, has a 50-percent interest in South Luzon Thermal Energy Corp., which is building a 270-mW coal plant in Batangas, in partnership with Trans-Asia Oil and Development Corp.

In the renewable-energy business, Ayala has a 50-percent stake in the NorthWind Power Development Corp., a 33-mW wind facility in Ilocos Norte, as well as interests in various mini-hydro projects. Further, it continues to actively explore greenfield and acquisition opportunities, given the significant power backlog in various regions.  source