Eximbank OKs loan for Ilijan power plant

The $700-million Ilijan gas-fired power plant project in Batangas may finally get its much-needed financial backing as the US Export-Import Bank (Eximbank) finally gave its nod. The Kepco Ilijan Corp. (Keilco) is the project proponent.

The US Eximbank, including the Japan and Korean Eximbanks, are pooling their resources to finance roughly 75 percent of the total project cost. The remaining 25 percent will be funded through equity participation by the project's strategic partners.

Korea Electric Power (Kepco), Keilco's mother company, has so far advanced some $170 million to partly fund initial operations.

"All the critical issues have been ironed out," said Oh In-Taek, chief executive officer of Keilco.

Oh said that they hope to start drawing down from the Eximbank's financial package by September this year, assuming that the US Exim Bank approves the financial closing this June.

The approval of the financial closing will likewise allow the project to start drawing from its strategic partners, namely Kyushu Electric Co., Mitsubishi Heavy Industries Inc., and Southern Energy Philippines Inc.

Keilco will retain 51 percent equity while the remaining 49 percent will be divided among Kyushu (10 percent), Mitsubishi (20 percent), and Southern Energy (roughly 19 percent).