President Duterte leads inauguration of USD 976 million power facility
Pagbilao, Quezon–President Rodrigo Roa Duterte led the inauguration today of the newly completed 420-megawatt (MW) Pagbilao Unit 3 power project, a coal-fired generating facility and merchant power plant that is expected to boost and stabilize energy supply in the Luzon grid, while generating billions of pesos in various taxes for the national and local government in the coming years.
“The completion of this project establishes Pagbilao Energy Corporation’s (PEC) partnership with government in pushing the nation’s progress through a cost-effective and reliable power plant that complies with environmental standards,” said Antonio R. Moraza, Chairman of PEC, a joint venture between TPEC Holdings Corporation and Therma Power Inc., which are in turn wholly-owned subsidiaries of TeaM Energy Corporation (TEC) and Aboitiz Power (AP), respectively.
“The growth of the Philippine economy under the administration of President Duterte will certainly translate to a rising demand for energy in the coming years. This project will help address the country’s development needs moving forward,” said John V. Alcordo, President of PEC.
“We view this project as an investment in the country’s future. This will light up homes and industries, give comfort to families, enable productivity and help create employment for Filipinos,” adds Alcordo, who is also Chairman and CEO of TEC, the single largest Japanese investment in the Philippines.
The newly-built power facility was developed and constructed at a cost of US$976 million. Construction began in December 2014. It is located within the same complex, and is adjacent to the existing units 1 and 2, of the Pagbilao Power Station operated by TEC. Units 1 and 2 have a total generating capacity of 735 MW.
PEC signed an omnibus agreement to finance the construction of the Pagbilao Unit 3 project. A total of up to Php33.3 billion debt financing was secured by PEC through the joint lead arrangers composed of BDO Capital and Investment Corporation, BPI Capital Corporation, and First Metro Investment Corporation. SB Capital Investment Corporation serves as co-lead arranger for the project while PNB Capital and Investment Corporation and China Banking Corporation are co-arrangers. Philippine Savings Bank also participates as a lender to the project.
The advisers for the Pagbilao Unit 3 project include URS Energy and Construction, Inc. for technical; ING Bank N.V., Singapore Branch for financing; Latham & Watkins LLP and Puno & Puno Law Office for legal; Aon Singapore Pte. Ltd. for insurance; and Sycip Gorres Velayo & Co. for tax and accounting.