5 banks lend $344 M to CBK project

Five commercial banks -- Societe Generale, Banque Nationale de Paris, ING Barings, Industrial Bank of Japan, and Dai-Ichi Kangyo Bank -- will provide the $344-million loan component to IMPSA for the funding of the rehabilitation and expansion of the Caliraya-Botocan-Kalayaan (CBK) hydro-electric power plants.

The American utility giant Edison Mission Energy will be in partnership with IMPSA on the project. IMPSA will be fully liable for the whole of the 25-year cooperation period.

IMPSA said the announcement "is to put to rest all unfounded speculation about the status of the project, and the capability of the contracting parties to effect it."

Napocor is in the process of complying with all the conditions precedent in the BOT contract, and IMPSA stated that "all the counterparties are waiting for this, from the operational to the funding side so that we can fully implement the agreement."

In February, Napocor allowed IMPSA to begin repairs on Unit 2 of the Kalayaan power plant. Napocor said the repairs were "urgent to prevent imminent damage to the unit" which could have damaged other components of the power plant.