A UNIT of Aboitiz Power Corporation has secured a P10-billion loan to finance the development of its hydroelectric power generation facility in Manolo Fortich, Bukidnon.
In a disclosure to the Philippine Stock Exchange (PSE), Aboitiz Power said its wholly-owned subsidiary, Hedcor Bukidnon, Inc., through Aboitiz Renewables, Inc., obtained the loan and credit accommodation from a consortium of lender-banks.
Aboitiz Power said the loan will be utilized for the development, construction, operation and maintenance of its 68.8-megawatt (MW) hydroelectric power plant in Bukidnon.
BPI Capital Corporation acted as mandated lead arranger and bookrunner while BPI Asset Management and Trust Group is acting as trustee and facility agent.
Construction of the P12.5-billion Manolo Fortich hydroelectric power plant has started after its groundbreaking last April.
The project is composed of two units – the 43-MW Manolo Fortich 1 and the 25-MW Manolo Fortich 2 – that will utilize hydropower resources from the Tagoloan River.
The project is expected to begin commercial operation by the end of 2017.
A memorandum of agreement with the local government units was secured for the project.
The hydro project will soon open an access road that can be utilized by the community to transport their local produce.
Farmers can also tap the water from the weir site to irrigate their farms.
As host to the power plants, Bukidnon will benefit from the taxes and generation share from the hydropower plant.
Harnessing the Tanaon, Amusig and Guihean rivers, the Manolo Fortich hydropower project will generate a total of 360 GWh [gigawatt-hours] of reliable and renewable energy to the Mindanao region.
A subsidiary of AboitizPower, Hedcor develops and operates efficient run-of- river hydropower systems.
Hedcor also started the commercial operation of two run-of-river hydropower plants in Davao del Sur last year—Tudaya 1 and 2—which are its 20th and 21st power plants. The two plants contribute a total of 13.6 MW to the Mindanao grid.
The 6.6-MW Tudaya 1 sources its water requirements from the Baroring River, while the 7-MW Tudaya 2 uses the Sibulan River.
Hedcor, through Hedcor Sabangan, Inc., is also building a 14-MW project in the municipality of Sabangan, Mt. Province.