MANILA, Philippines - Kauswagan Ltd. Co. has moved a step closer in commencing its 4 x 135 megawatt coal-fired power plant in Lanao del Norte in Maguindanao.
The company is a partnership led by AC Energy Holdings Inc., a wholly-owned subsidiary of Ayala Corp. and Power Partners Ltd.
“Please be informed that GNPower Kauswagan Ltd. Co., a limited partnership owned by AC Energy Holdings, Inc., a fully-owned subsidiary of Ayala Corp., the Philippine Investment Alliance for Infrastructure (PINAI) Fund, and Power Partners Ltd. Co., has signed definitive documentation for the financing to commence the phased construction of a 4 x 135MW coal-fired power plant in a Kauswagan, Lanao del Norte,” Ayala Corp. said in a disclosure to the stock exchange.
The PINAI Fund would provide financing but terms of the deal were not immediately available.
“The total project cost will be funded by both debt and equity,” Ayala Corp. said, but did not provide the final investment requirement needed by the project.
The conglomerate said the debt would be financed by a syndicate of domestic banks with additional debt from international banks.
Furthermore, Ayala Corp. said the plant would help alleviate the tight power supply situation in Mindanao.
“Construction of the plant is scheduled to start in early 2015,” Ayala said in its disclosure.
AC Energy has also lined up several power projects in Luzon.
For instance, the company through Northwind Power Development Corp., has completed its 19-MW wind expansion project in Bangui, Ilocos Norte last October, bringing Northwind’s capacity to 52 MW.
AC Energy’s affiliate North Luzon Renewable Energy Corp. (NLREC) has also completed another 81-MW wind farm in Pagudpud, Ilocos Norte.
The project is awaiting the issuance of a certificate of endorsement for feed-in-tariff from the DOE.
Combined, Northwind and NLREC put Ayala’s total wind power capacity at 133 MW.
These power projects would boost power capacity in the Luzon grid, which is facing a looming shortage next year, and also puts the conglomerate on track to meet its goal of assembling 1,000 MW in the next few years.