Alsons Power targets to close financing deal for Zamboanga plant

MANILA, Philippines — Alsons Power Group, the power business of Alsons Consolidated Resources Inc. (ACR), is eyeing to close construction and financing deals for its 105-megawatt (MW) coal-fired power plant in Zamboanga City within the first half of 2019.

The company has completed pre-evaluation of prospective engineering, procurement and construction (EPC) contractors and shortlisted four groups to construct the 105-MW San Ramon Power Inc. (SRPI) plant, Alsons Power vice president for project development Joseph Nocos said in an interview yesterday.

These are Dongfang Electric International Corp. headquartered in Chengdu, China; Singapore-based Jurong Engineering Ltd.; Northeast No.1 Electric Power Construction Co., Ltd. (NEPC 1) – a wholly-owned subsidiary of China Energy Engineering Group; Shandong Electric Power Construction Co. (SEPCO III) – a subsidiary of Power Construction Corp. of China.

Nocos said the evaluation is ongoing for their technical and financial proposals for the project.

“We’ll be making a final decision by April next year,” he said.

Meanwhile, parallel negotiations are also taking place for the financing agreement for the project, which is estimated to cost P16 to 17 billion.

The loan component will cover 70 percent – or around P12 billion – of the total project cost and will be led by Land Bank of the Philippines, Nocos said.

Alsons is also in talks with three to four banks to cover the loan, he said.

“We haven’t signed  an agreement…but it will be a consortium of three to four banks. We’re eyeing financial close by June,” Nocos said.

The SRPI plant is the biggest power project in the Zamboanga Peninsula when completed and will provide baseload power to Zamboanga City and nearby areas.