Release of $300 M for Ilijan power project seen in 3 weeks

Proponents of the 1,200-megawatt Ilijan gas-fired power plant led by Kepco Philippines Corp. (Kephilco) are optimistic that they will be able to draw down some $300 million from different multilateral creditors within the next two to three weeks.

"We don’t see any problem in drawing down from the loan. We are just waiting for some documents from the Department of Finance (DOF) to be signed within this month. We expect to get documents soon, maybe this week or next week," Kephilco president and chief executive officer Oh In-Taek said in an interview.

Oh said they expect the creditors – Japan Bank for International Cooperation (JBIC), Korean Export and Import Bank and US Eximbank – to allow them to withdraw about $300 million out of a $475-million total financial package if the DOF documents are signed.

"We don’t see any problem in getting these documents. Once the documents are signed we will draw down," he said.

The Kephilco official said to date, the project is 85-percent complete and will be ready to go on-stream this year.

Napocor has a 25-year build-operate-transfer (BOT) contract with Kephilco, a subsidiary of the Korean Power Corp. (Kepco) for the implementation of the project along with other foreign partners such as Southern Energy Philippines, which would have a 20 percent stake; Mitsubishi Electric, 21 percent; and Kyushu Electric, eight percent.

Since Kephilco has yet to draw down from the financial package, Kepco has been subsidizing the construction of the $800-million gas-fired power plant since 1999, Kepco said it has advanced $200 million so far.