Japanese group eyes three more linkup power projects

The Japanese consortium of J Power Systems and Kanematsu has expressed interest in undertaking three more vital interconnection projects in the country.

The power firms make up the consortium that bagged the $68.5-million Leyte-Cebu interconnection project bid out last July.

"They are in the running...This is proof of investor confidence in the country and the reality that we need additional capacity in view of the looming power shortage in Visayas and Mindanao," Alan Ortiz, National Transmission Corp. (Transco) president, told reporters.

The Transco chief said J Power Systems and Kanematsu will bid for the following projects: the crucial P2.157-billion Cebu-Negros-Panay interconnection upgrading projects (CNP-IUP); the $40-million Cebu-Mactan interconnection project; and the $354-million Leyte-Mindanao link-up project.

"They are among the five companies that have submitted technical and financial bids for the Cebu-Mactan project. They are also running for the CNP-IUP as well. Also, we are assured of their continuing interest in the Leyte-Mindanao project as the Japanese government and companies continue to have abiding interest in the Philippines," Ortiz said.

Meanwhile, Transco vice president for engineering services Winifredo Pangilinan said the proposed financing scheme of J Power - Kanematsu is expected to be finalized by the first week of November.

The Japan Bank for International Cooperation-International Finance Office (JBIC-IFO) will finance 85 percent of the contract amount, or about $62 million.

Pangilinan said the Standard Chartered Bank-Manila Office will issue notes that will cover the remaining 15 percent peso financial requirement for the Leyte-Cebu project.

"The 85 percent share is broken down into a syndicated loan from JBIC (60 percent), UFJ (20 percent), and Standard Chartered Bank of Tokyo (20 percent)," said Pangilinan.

Ortiz said the project is expected to begin supplying the much-needed additional power to the Cebu-Negros-Panay subgrid by the first quarter of 2005, at the latest.

The Cebu-Mactan project is also expected to take off in Oct. 2005 as financing for the project will come from the Miyazawa Fund, with the JBIC acting as guarantor bank.