Prime Infra secures P273.5B for hydro energy
MANILA, Philippines — Prime Infrastructure Capital Inc. is set for a stronger presence in the hydroelectric power scene with P273.5 billion in fresh funds backing the activation of 2,000 megawatts of generating capacity.
The firm led by billionaire Enrique Razon Jr. said it had secured two financing agreements on Thursday to fund the buildup of its pumped storage portfolio.
Of the total amount, P214.87 billion was obtained from a consortium of banks that includes Bank of the Philippine Islands, BDO Unibank, China Banking, Land Bank of the Philippines, Metropolitan Bank & Trust Company, Philippine National Bank, Security Bank and Union Bank of the Philippines.
Another deal was signed, this time involving a P58.6-billion dual-currency equity standby letter of credit facility with foreign lenders MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking.
“This financing reflects the confidence of local and international banks in Prime Infra’s capability to deliver large-scale, critical infrastructure,” Prime Infra president and CEO Guillaume Lucci said in a statement.
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Pumped storage
“Our pumped storage hydropower projects demand significant capital, and we are fortunate to have the trust of our banking partners,” Lucci said.
The CEO added that these agreements are expected to accelerate critical infrastructure investments and strengthen energy security and reliability in the Philippines.
The funds will finance the 1,400-megawatt (MW) Pakil Pumped Storage Hydropower Plant of Ahunan Power Inc. in Laguna, and the 600-MW Wawa Pumped Storage Hydropower Plant of Olympia Violago Water & Power Inc. in Rizal.
Lopez-led First Gen Corp. recently disclosed its plan to acquire a 33-percent stake in these hydro assets for P61.87 billion. This builds on both companies’ partnership linked to natural gas facilities.
READ: Lopez, Razon trim hydropower deal
The projects, tagged as power assets of national significance, are targeted for completion by 2030.
Energy storage systems have been gaining popularity among renewable energy producers. They help draw and store electricity, and release the power when demand increases or supply is constrained.
In pumped storage facilities, energy storage happens by pumping water to an upper reservoir during off-peak hours. Releasing the water during peak demand will then generate electricity. INQ
