Phinma-Ayala joint venture to secure P7-B loan
Trans-Asia Oil and Energy Development Corp. of the Phinma group on Tuesday reported that its joint venture company with AC Energy Holdings Inc. is set to secure a P7-billion loan from a group of local banks to fund the expansion of a 135-megawatt (MW) coal power plant in Batangas province.
South Luzon Thermal Energy Corp. (SLTEC), a joint venture of Trans-Asia and the Ayala group’s AC Energy Holdings, already signed a loan contract last Monday with Banco de Oro Unibank Inc., Security Bank Corp. and Rizal Commercial Banking Corp.
“Proceeds of the loan will be used to fund the expansion of SLTEC’s power plant currently under construction in Calaca, Batangas, increasing the plant’s capacity from 135 MW to 270 MW,” Trans-Asia assistant corporate secretary Alan T. Ascalon said in a disclosure to the Philippines Stock Exchange.
In March, Trans-Asia said it would invest P1.5 billion in SLTEC to support an expansion program that would increase the parent company’s power generation portfolio.
AC Energy Holdings of the Ayala group will infuse the same amount in the joint venture.
The estimated total cost of the project is P10 billion, Trans-Asia officials earlier said.
The second 135-MW coal-fired fluidized bed will be constructed next to the first unit. SLTEC unit 2 is expected to be fully operational by 2016.
Earlier this year, SLTEC signed up D.M. Consunji Inc. for an engineering procurement contract. DMCI Holdings Inc. said that its construction arm, D.M. Consunji and China National Technical Import and Export Corp., will put up SLTEC 2 on a turnkey basis.
Trans-Asia and AC Energy entered into a a joint venture agreement in 2011 to develop and operate the Batangas thermal power plant.
Since 2007, Trans-Asia has been actively trading electricity in the Wholesale Electricity Spot Market and has continuously expanded its supply portfolio and customer base.
“Having anticipated retail competition and open access early on, Trans-Asia is set to provide custom electricity services to distribution utilities and qualified end-users,” the Phinma group said on its website.
Apart from power generation and supply, Trans-Asia also engages in oil and gas exploration. It is a minority partner in Supply Contract (SC) 6, SC 14, SC 51, SC 55 and SC 69. It also holds an option to acquire participating interest in SC 52.
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