Aboitiz Power and TeaM Energy close financing for Pagbilao power plant

Aboitiz Power Corp. and TeaM Energy, a company formed by Tokyo Electric Power Co. and Marubeni Corp., have partnered for the 400MW expansion of the Pagbilao coal-fired power plant, Pagbilao unit III, in Quezon, Philippines.

Aboitiz Power has announced that Therma Power has entered into a joint venture agreement with TeaM Energy for the development of the project through Pagbilao Energy Corp. (PEC). PEC is a consortium composed of Mitsubishi Hitachi Power System Ltd.; Daelim Industrial Co. Ltd.; DESCO, Inc.; and Daelim Philippines, Inc.

The Pagbilao 3 will be constructed at the existing 700MW Units I and II of the Pagbilao coal-fired thermal power plant.

PEC, the engineering, procurement and construction contractor for the project, has signed an omnibus agreement to finance the construction of Pagbilao Unit III with a consortium of lender-banks to obtain loans and credit accommodations in the amount of up to P33.309 billion (US$760 million).

The project will be financed through 70% debt and 30% equity.

BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. acted as joint mandated lead arrangers, while SB Capital Investment Corp. was appointed co-lead arranger for the syndicated loan.

Construction for the unit is expected to take 42 months, with completion targeted by November 2017. The expanded Pagbilao plant is anticipated on stream around 2018 and it is lined up among the medium-term addition to the country’s power supply.