Philippines' Aboitiz gets $557 mil loan for Davao coal-fired power plant

Subscribe Now October 18, 2013 at 08:39am

Therma South, a subsidiary of the Aboitiz Group of the Philippines, has signed a Pesos 24 billion ($557 million) deal with a consortium of lenders and banks to finance the construction of a new coal-fired power plant.

The proceeds of the loan will be used to finance the construction and operation of Therma South's 300-MW power plant in Davao City in the southern island of Mindanao.

An industry source said Thursday that the power plant will require between 1 million mt and 1.2 million mt of coal annually, with calorific values ranging over 4,600-5,000 kcal/kg GAR and sulfur of up to 1%.

A majority of the coal supply will come from Indonesia, the source said.

AboitizPower, parent company of Therma South, said on its website that the two 150-MW units are slated to start commercial operations in March and June 2014, respectively.

AboitizPower has also put forth a proposal for a 600-MW coal-fired power plant in Subic Bay. The $1.28 billion project is being handled by Redondo Peninsula Energy, a joint venture by AboitizPower, Taiwan Cogeneration Corp. and Meralco PowerGen Corp. The first 300-MW unit is scheduled to start commercial operations by January 2015 and the second 300-MW unit by June of the same year.


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