The biggest power project in northern Mindanao, costing about P40 billion, has secured financing from four banks, putting the construction of the 405-megawatt plant on track toward a 2016 completion target.
FDC Utilities Inc. said its subsidiary, project developer FDC Misamis Power Corp., began construction work on the site late last year.
The company did not name the banks and the amount they have committed to the project. Nor did he say how much of the P40 billion funding requirement would come from the four banks and how much would be sourced to internally generated funds.
“It’s [the financing]okay, everything’s done. We’ve already started the works,” FDC Utilities Inc. Chairman Jonathan Gotianun said.
“We have four banks. I don’t have the exact figure, but no problem. I think we’re quite happy with the progress and so we’re on track. We’re hoping to see more things going up soon, but we have to start somewhere,” he added.
The power supply situation in the Philippines, especially in Mindanao, has reached a critical stage due to a lack of a long-term strategy to deal with the demands of a growing population and economy, and with the need to replace aging generation facilities.
Part of the project is the building of a new thermal circulating fluidized bed power plant that will use coal as fuel. All three units of the plant are expected to start commercial operations by 2016.
Gotianuan said the group may set aside plans to venture into Luzon so that it could focus on the Misamis project.
“Our principal focus now is to build that plant in Misamis because it’s a relatively big plant—405 MW—so we’re focused on getting that done. But at the same time, of course, if there’s some other opportunity we’d love to look at it,” Gotianun said, adding that the company is always on the lookout for prospects to expand its reach across the country.
“Just like any other company, we’re always looking for opportunities but there’s nothing definite [for now]. But as I’ve said, we’re always looking for opportunities to invest,” he said.
The company has no immediate plans to move into renewable energy (RE) but is aware of the interest generated by the sector.
“We don’t have anything specific yet. But I think there is a lot of RE discussions and people are trying to do RE projects. I don’t think there have been too many people who have been able to execute any of that yet,” he said.