IFC offers up to $300M loan for Masinloc buyer
Financing of up to $300 million will be made available by the World Bank financing arm International Finance Corp. (IFC) to United States-owned AES Corp. to fund the acquisition of the 600-megawatt (MW) Masinloc coal-fired power plant in Zambales.
Masinloc Power Partners Co. Ltd (MPPC), a subsidiary of AES, was the winning bidder for the MPPC in July valued at $930 million.
“MPPC plans to rehabilitate the Masinloc CFPP to improve its operating performance such as plant’s availability and to address certain environmental issues such as excess dust emissions to ensure its environmental compliance,” the IFC said.
AES is a leading global power developer and operator in the world. It is listed on the New York Stock Exchange. The company has 13 regulated utilities and 121 generation facilities, with a total generation capacity of around 43,000 MW.
The total project cost for the Masinloc facility is estimated at approximately $1.1 billion, which includes the acquisition price, funding for the debt service reserve account, transaction costs, refurbishment works and initial working capital needs.
“The project is the post-privatization financing of an existing coal-fired power plant that has been in operation since 1998. The project sponsor has commissioned an environmental due diligence audit and a technical condition assessment of the plant to assist in planning necessary equipment and procedural upgrades while key elements of the upgrade program will be part of an action plan to be agreed with IFC,” the lending company added.
The IFC said it is anticipated that MPPC will undertake an expansion of the plant in the future but there are no definite plans to date.
MPPC has tapped the ERM-Hong Kong Ltd. to undertake a Phase I Environmental Due Diligence review of the existing operations at the plant and to develop a Remedial Action Plan for the Masinloc plant to meet government’s requirements and IFC’s performance standards within a reasonable timetable.
On the other hand, Asia Pacific offices of PB Power was hired to conduct a technical condition assessment of the plant to prepare a turnaround plan to assist in planning necessary equipment and procedural upgrades.
ERM and PB Power conducted site visits and interviews at the Masinloc plant in September. ERM and PB Power’s October reports were the basis for IFC’s environmental and social review of the project.
Located 250 kilometers northwest of Metro Manila, the Masinloc power facility has a total area of 137 hectares, including 11 hectares on land reclaimed from the sea.
The power plant was designed and commissioned in 1998 as a two-unit, 600-MW plant. The plant utilizes refined coal from Australia, China, Indonesia and occasionally, local coal.
Daily TribuneMasinloc Power Partners Co. Ltd (MPPC), a subsidiary of AES, was the winning bidder for the MPPC in July valued at $930 million.
“MPPC plans to rehabilitate the Masinloc CFPP to improve its operating performance such as plant’s availability and to address certain environmental issues such as excess dust emissions to ensure its environmental compliance,” the IFC said.
AES is a leading global power developer and operator in the world. It is listed on the New York Stock Exchange. The company has 13 regulated utilities and 121 generation facilities, with a total generation capacity of around 43,000 MW.
The total project cost for the Masinloc facility is estimated at approximately $1.1 billion, which includes the acquisition price, funding for the debt service reserve account, transaction costs, refurbishment works and initial working capital needs.
“The project is the post-privatization financing of an existing coal-fired power plant that has been in operation since 1998. The project sponsor has commissioned an environmental due diligence audit and a technical condition assessment of the plant to assist in planning necessary equipment and procedural upgrades while key elements of the upgrade program will be part of an action plan to be agreed with IFC,” the lending company added.
The IFC said it is anticipated that MPPC will undertake an expansion of the plant in the future but there are no definite plans to date.
MPPC has tapped the ERM-Hong Kong Ltd. to undertake a Phase I Environmental Due Diligence review of the existing operations at the plant and to develop a Remedial Action Plan for the Masinloc plant to meet government’s requirements and IFC’s performance standards within a reasonable timetable.
On the other hand, Asia Pacific offices of PB Power was hired to conduct a technical condition assessment of the plant to prepare a turnaround plan to assist in planning necessary equipment and procedural upgrades.
ERM and PB Power conducted site visits and interviews at the Masinloc plant in September. ERM and PB Power’s October reports were the basis for IFC’s environmental and social review of the project.
Located 250 kilometers northwest of Metro Manila, the Masinloc power facility has a total area of 137 hectares, including 11 hectares on land reclaimed from the sea.
The power plant was designed and commissioned in 1998 as a two-unit, 600-MW plant. The plant utilizes refined coal from Australia, China, Indonesia and occasionally, local coal.
Labels: ifc, masinloc, world bank
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