ALCANTARA-LED Alsons Consolidated Resources, Inc. (ACR), through its subsidiary Sarangani Energy Corporation (SEC), has secured a P10.5-billion syndicated loan that will be used to help finance the ongoing construction of the second 105-megawatt (MW) section of SEC’s 210 MW coal-fired baseload power plant in Maasim, Sarangani Province, the parent company said.
ACR told the Philippine Stock Exchange (PSE) on Wednesday that the loan has a 13.5-year tenor including a 3.5-year grace period on principal repayment.
The loan agreement was signed by SEC and a consortium of local banks comprised of BDO Universal Bank (BDO), Asia United Bank (AUB), Rizal Commercial Banking Corporation (RCBC), United Coconut Planters Bank (UCPB), Philippine Business Bank, China Bank Savings, and Robinsons Bank Corporation.
The joint lead arrangers were BDO Capital and Investment Corporation, RCBC Capital Corporation, AUB, and UCPB.
The SEC plant’s first 105-MW section began commercial operations in April of 2016, providing much needed baseload power to over three million people in several provinces and cities in Mindanao.
Construction of the second 105-MW section began in January this year and is targeted to be completed in the first half of 2019. At a cost of nearly $600 million, the SEC power plant is the single largest investment in Sarangani Province and the entire Region 12.
ACR holds 75 percent equity in SEC with Toyota Tsusho Corporation (TTC), the trading company of the Toyota Group, owning the remaining 25 percent equity.
Aside from SEC, ACR operates three diesel power facilities: the 103-MW Mapalad Power Corporation diesel plant in Iligan City, the 55-MW Southern Philippines Power Corporation facility in Alabel, Sarangani; and the 100-MW power plant of the Western Mindanao Power Corporation in Zamboanga City.
Also within the year, ACR expects to begin construction of the 15 MW Siguil River run-of-river hydroelectric plant in Maasim, Sarangani; and the 105-MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Talisayan, Zamboanga City.
The Siguil plant will be ACR’s first renewable energy venture. The company plans to develop other run-of-river hydropower projects with a total potential capacity of 185 MW in different places in Mindanao and Negros Occidental.
Meanwhile, the San Ramon power plant is projected to begin operating in late 2020 to provide baseload power to Zamboanga City and other key areas in Mindanao.
ACR-affiliated power facilities are expected to have a total generating capacity of 588 MW by 2020, which should meet more than 25 percent of Mindanao’s projected peak power demand for that year.