FirstGen readies funds for 414-MW plant

FIRST Gen Corp. is finalizing the financing and construction plans for the 414-megawatt (MW) Sta. Maria power plant—another piece to its growing natural gas hub in Batangas.

Company president and COO Francis Giles Puno told reporters that the company was considering borrowing from local banks. However, he said tapping a German financial institution was also possible. Financing may be secured by next year.

The project requires about $500 million in investment. “Of that, we may finance $300 million to $350 million,” he said.

Sta. Maria is an expansion of the 414-MW San Gabriel gas power plant, which will be completed next year. The company will go ahead with Sta. Maria if certain “triggers” are met: financing, an off-take agreement, and completed negotiations with equipment suppliers.

“Those are the three ongoing discussions,” Puno said. Details should be firmed up by the end of 2015 or in early 2016, he said.

San Gabriel was partially funded by a $265-million export credit facility with KfW IPEX-Bank of Germany since the supplier was Siemens, a German company. Puno said it was possible First Gen may tap Siemens as a supplier and KfW as lender for the Santa Maria project.