First Gen Corp. President and Chief Operating Officer (COO) Francis Giles Puno said the company will raise around $150 million to $200 million from local banks for its Sta. Maria natural gas project.
”We hope to reach financial closing for Sta. Maria by next year — the project is about $500 million – the investment of that we may finance $300 million to $350 million,” Puno said.
He noted the company is considering domestic banks for the loans.
Puno added the target completion will depend on financing, offtaker agreements and the negotiations with its equipment supplier. He said discussions to secure the three are ongoing.
Puno said First Gas Power Corporation, the natural gas oriented subsidiary of First Gen, is targeting to finish construction of the Batangas-based plant by 2019, serving as an expansion of 414 Megawatt (MW) San Gabriel.
But, he stressed if First Gas could select a supplier this year, it could proceed on constructing the plant by next year. Puno said building the power plant will take 36 months.
First Gas Power Corp’s other project, San Gabriel is on track to be completed next year, according to Puno.