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Aboitiz borrows US$ 557 million for coal plant

World Coal,

Therma South, a subsidiary of the Philippines Aboitiz Group, has signed a US$ 557 million deal with a group of lenders and banks to finance the construction of a new coal-fired power plant in Davao.

The loan will be used to finance the construction and operation of Therma South’s two 150 MW circulating fluidized-bed coal-fired electric power generation facilities, located in Davao City and Davao del Sur, on the southern island of Mindanao, Philippines.

The power plant will require between 1-1.2 million tpa of coal, with sulfur levels of up to 1%. The majority of the coal supply will come from Indonesia, according to an industry source.

In July 2012, Aboitiz Power announced it had signed contracts worth US$ 546 million for the coal-fired power generation facility. "Anticipating tightness in the power supply in Mindanao, AboitizPower is committed to do what it takes to build the Therma South power project at the soonest possible time”, commented Erramon Aboitiz, CEO of AboitizPower.

He continued: “We will continue to invest in power generation projects to support the growth of Mindanao today and in the future".

AboitizPower, parent company of Therma South, said on its website that the two 150 MW units are due to commence commercial operations in March and June 2014, respectively.

Edited from various sources by Katie Woodward

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