$355-M Funding for for Power Plant Closes; 210 MW Coal-Fired

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Byline: MYRNA M. VELASCO

Project proponents of the 210megawatt coalfired power plant project in Mindanao have finally closed the $355-million loan that will bankroll the construction of the facility starting this year.

The financing contracts for the project has already been signed by representatives of State Power Development Corporation, a joint venture of State Investment Trust Inc. (SITI), German firm Steag; and the officials of National Power Corporation and Power Sector Assets and Liabilities Management Corporation.

Those extending loans are Kreditanstalt fur Wiederaufbau (KfW), Dresdner Kleinwort Wasserstein, HypoVereinsbank, Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance and Banco de Oro.

In financing the project, Andreas Ufer, First Vice President of KfW Group, said "we are pleased to support Steag in expanding its IPP business in the Philippines. We are confident that Steag will be able to build and operate an economically-efficient power plant while taking into account all environmental aspects."

Given the concerns of various environmental groups, SPDC committed to meet environmental standards as set under the Philippine Clean Air Act; and also with that of the World Bank.

The plant is designed to use flue gas desulphurization technology to remove sulfur dioxide from the combustion gases. …