Olongapo SubicBay BatangGapo Newscenter

Saturday, August 23, 2008

Subic Enerzone gets green light for loan

By.Euan Paulo C. Añonuevo - Manila Times

THE Energy Regulatory Commission (ERC) has given Subic Freeport Zone’s electricity distributor the authority to secure a multimillion-peso loan from the Development Bank of the Philippines (DBP).

In a decision, the ERC said it gave the green light to Subic Enerzone Corp. (SEZ) to tap a P150-million loan from the government financial institution.

SEZ plans to use the proceeds of the proposed borrowing for the acquisition of National Transmission Corp.’s (TransCo) sub-transmission assets in Subic as well as to rehabilitate its lines and substations.

Among the assets SEZ plans to acquire are three 69-kilovolt lines, disconnect switches and the Subic substation worth P131 million.

SEZ will then spend P30.25 million to rehabilitate these facilities.

The total cost of the proposed acquisition and rehabilitation is pegged at about P161 million. As such, SEZ will source the balance of P11 million from its own pockets.

A wholly owned subsidiary of the Aboitiz group of Cebu, SEZ operates the power distribution system of the Subic Freeport under a 25-year distribution management services agreement with the Subic Bay Metropolitan Authority. The company won the franchise through a competitive bidding in 2003.

Aboitiz Power Corp. (AP) originally held an 80-percent stake in SEZ until late last year when it bought out the 20-percent stake of Team Philippines Industrial Power II Corp., formerly Mirant, for P92 million.

Aside from SEZ, AP also controls Mactan Enerzone Corp. and Balamban Enerzone Corp., each of which services the electricity needs of their respective economic zones.

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