Banks provide $270m for Philippines power project

The $451m Cebu Power project - the ‘first ever internationally financed merchant power project in the Philippines’ – has received substantial bank finance. The first of two planned units designed to alleviate power shortages is due to become operational in about a year’s time.

A consortium of banks has provided $270 million of financing for the 200-megawatt coal-fired Cebu power project in the Philippines. The consortium includes Export-Import Bank of Korea, Asian Development Bank, Sumitomo Mitsui Banking Corporation, Credit Agricole Corporate and Investment Bank and ING Bank.

According to a press release issued by law firm Paul Hastings Janofsky & Walker, which advised the banking consortium, Cebu is the “first ever internationally financed merchant power project in the Philippines”. The project is designed to alleviate power shortages in the Visayas, one of the Philippines’ three main geographic regions. Cebu is a province within the Visayas.  

Valued at $451 million in total, the project is being developed by Kepco SPC Power Corp, a joint venture between Korean electric power company Korea Electric Power Corp and Philippines developer SPC Power Corp.

Cebu’s first 100-megawatt unit is scheduled to come on line in February 2011 and the next 100-megawatt unit in May 2011. According to the press release, KSPC will sell power from the project primarily to electricity cooperatives on Cebu and Negros Islands and to the proposed Wholesale Electricity Spot Market in the Visayas.