Palm Concepcion inks P6-B loan

MANILA, Philippines - Asia United Bank Corp. and China Banking Corp. have inked a P6-billion loan package with Palm Concepcion Power Corp. (PCPC), the joint venture between A. Brown subsidiary Palm Thermal Consolidated Holdings Corp. and Jin Navitas Resource Inc. of the Rebisco Group, to partly finance the construction and operation of a 135-megawatt circulating fluidized bed (CFB) power plant project in Concepcion, Iloilo.

AUB, the banking arm of Republic Biscuits Corp. (Rebisco), was recently listed at the stock market. Chinabank is owned by the group of retail tycoon Henry Sy Sr.

Specifically, the power company would utilize the proceeds of the term loan facilities to fund the engineering, procurement, construction and financing costs of the project under an engineering, procurement and construction contract. The Iloilo power project is expected to be operational by mid-2016.

BDO Capital & Investment Corp, the investment arm of the Sy Group of Companies, acted as the lead arranger and sole bookrunner for the term loan facilities.

The coal-fired power plant project, launched last Jan. 15, will use the CFB technology and is one of the most advanced and most fuel-efficient plant in the Visayas.

The consortium has tapped NLSC – the consortium of First Northeast Electric Power Engineering Corp. of China (NEPC), Liaoning Electric Power Survey & Design Institute and Shenyang Electric Power Design Institute Co., Ltd. – as engineering, procurement and construction (EPC) contractor.

PCPC chairman Walter Brown earlier said the entry of the Concepcion plant is timely since the Department of Energy has identified 2015 to 2016 as a critical period when additional capacities will be needed in the Visayas.