2 More Japanese Banks Join Financing Package; Cebu-Leyte Interconnection
Byline: MYRNA M. VELASCO
Two more Japanese banks UFJ Bank and Standard Chartered Bank of Tokyo have been identified to join Japan Bank for International Cooperation (JBIC) in extending the offshore funding component of Leyte-Cebu interconnection and upgrading project.
Juniche Yuge, director of Japanese firm Kanematsu Corporation, noted the two banks will pitch in at least 40-percent of the foreign loan component; while JBIC provides the bigger chunk of 60 percent.
Kanematsu is in partnership with J Power Systems in the consortium that won the bidding for the project.
Based on the submitted financing package for the Leyte-Cebu link-up; at least 85 percent of funding will be sourced offshore; while the 15 percent local component will be infused by Standard Chartered Bank-Manila.
Yuge said loan negotiation will formally start this week and is expected for completion on or before end-November.
The actual implementation of the project is targeted before the end of the year; and if the 14-month schedule would be met, the newly-linked up transmission network can be set on commercial operation by first quarter of 2005.
Aside from the Leyte-Cebu interconnection venture, the Japanese group has also joined auction for the $40 million Cebu-Mactan linkup project. …