ADB to lend Napocor $500 M

The Asian Development Bank (ADB) is likely to lend only $500 million to the National Power Corp. (Napocor) for the period 2000 to 2004, Napocor officials said over the weekend.

In an interview, the officials said this $500-million loan is part of an estimated $600 million worth of power-related projects submitted by Napocor to the bank for approval for the said five-year period.

They said the proposed $500 million funding for ADB will include interest during construction of the projects.

"Not all funding will come from ADB, others will be sources from loan syndication of private banks. But ADB will be the lead proponents," they said.

The Napocor officials said they are still looking for funding for the remaining amount for the ADB-approved projects.

The $500 million will finance five projects such as the Leyte-Mindanao Interconnection project, Habaga-Kirahon power generation, Mindanao substations expansion. Luzon transmission lines upgrading and Power Trading and Pulling System and Development.

The Leyte-Mindanao project will need about $400 million to $500 million funding but the ADB reportedly committed to finance only $100 million.

Another Napocor official said that ADB’s $500-million fund for the company is not yet final because the bank tends to decrease the size of the loan as it goes through the project proposals.

And worse, the officials said the ADB has adopt a "wait-and-see" attitude with regard to the release of the loans since the bank is awaiting the result of the Omnibus Power Bill which is expected to be passed anytime this month.

"The passage of the bill is delayed because all the lawmakers in the Upper House are busy with the impeachment trials. So, all the ADB projects are virtually on hold," the officials said.

The ADB, the officials said, will not approve any proposed new loan from Napocor pending approval of the power bill.