Semirara gets P14-billion term loan to fund coal plant

MANILA, Philippines - Semirara Mining Corp. has obtained a P14-billion syndicated term loan facility to fund its coal-fired thermal power plant in Calaca, Batangas.

The company said BDO Capital & Investment Corp. was the lead arranger for the loan facility.

Proceeds from the term loan will be used for the design, engineering, construction and operation of the two 150-megawatt coal-fired thermal power plant to be located adjacent to the current two 300-MW Batangas coal fired thermal power plant owned by subsidiary SEM-Calaca Power Corp.

Semirara said this project will be implemented through another unit, Southwest Luzon Power Generation Corp., which is now under the process of incorporation.

The 600-MW Calaca facility is designed to run as a base-load plant using local coal from Semirara Island. Owned 100 percent by Semirara Mining Corp., the plant started rehabilitation in August 2010 and is targeted for completion by March or April next year.

DMCI Holdings Inc., parent firm of Semirara, won the bidding for the Calaca coal fired facility in July 2009 with its offer of $361.7 million (roughly P17 billion).

The expansion of the power plant is in line with the group’s objective of churning out a total of 1,550 MW of power by 2013 from nothing in 2009.