Friday, June 1, 2018

Pagbilao Energy to supply Luzon 420MW more


By Lenie Lectura - May 31, 2018

LUZON is assured of an additional 420 megawatts (MW) with the newly completed Pagbilao Unit 3 power plant of Pagbilao Energy Corp. (PEC).
“The completion of this project establishes a partnership with the government in pushing the nation’s progress through a cost-effective and reliable power plant that complies with environmental standards,” PEC Chairman Antonio Moraza said.
The PEC is a joint venture of TPEC Holdings Corp. and Therma Power Inc., which are wholly owned subsidiaries of TeaM Energy Corp. (TEC) and AboitizPower, respectively.
President Duterte led the inauguration Thursday afternoon.
John V. Alcordo, president of PEC, said the power project will help address the country’s development needs moving forward. The power plant is expected to boost and stabilize energy supply in the Luzon grid, while generating billions of pesos in various taxes for the national and local government in the coming years.
“The growth of the Philippine economy under the administration of President Duterte will certainly translate to a rising demand for energy in the coming years. We view this project as an investment in the country’s future. This will light up homes and industries, give comfort to families, enable productivity and help create employment for Filipinos,” said Alcordo, who is also chairman and CEO of TEC, the single-largest Japanese investment in the Philippines.
The newly built power facility was developed and constructed at a cost of $976 million. Construction began in December 2014. It is located within the same complex, and is adjacent to the existing units 1 and 2, of the Pagbilao Power Station operated by TEC. Units 1 and 2 have a total generating capacity of 735 MW.
PEC signed an omnibus agreement to finance the construction of the Pagbilao Unit 3 project.  A total of up to P33.3-billion debt financing was secured by PEC through the joint lead arrangers composed of BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp.
SB Capital Investment Corp. serves as colead arranger for the project, while PNB Capital and Investment Corp. and China Banking Corp. are co-arrangers.  Philippine Savings Bank also participates as a lender to the project.
The advisers for the Pagbilao Unit 3 project include URS Energy and Construction Inc. for technical; ING Bank NV Singapore Branch for financing; Latham & Watkins Llp. and Puno & Puno Law Office for legal; Aon Singapore Pte. Ltd. for insurance; and Sycip Gorres Velayo & Co. for tax and accounting.

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