AC Energy secures additional funding for Lanao power plant

MANILA, Philippines – AC Energy Holdings Inc., the energy arm of Ayala Corp., and its partners have secured additional $200 million funding to construct the fourth unit of its 540-megawatt (MW) coal-fired power plant in Kauswagan, Lanao del Norte in Mindanao.

Ayala Corp. disclosed yesterday GNPower Kauswagan Ltd. Co. “achieved financial close for the additional funding.

GNPower Kauswagan is a Philippine limited partnership of AC Energy, the Philippine Investment Alliance for Infrastructure (PINAI) Fund and Power Partners Ltd. Co. AC Energy corners 80 percent of the project.

AC Energy president and chief executive officer John Eric Francia said the cost of the project is about $1 billion.

The company said the total estimated project cost would be funded through 70 percent debt and 30 percent equity. “The debt component will be financed by a syndicate of domestic and international banks,” it said.

To be built on a phased construction, the power plant will support the economic development of Mindanao, AC Energy said.

“Construction of the first three units of the plant is in full swing, with Unit 1 expected to be completed by fourth quarter 2017,” it said.

The project is among the projects that will help the company meet its target of 1,000-MW attributable capacity.

The Ayala group currently has about 700 MW in its energy portfolio.

AC Energy has a 2x135-MW coal-fired power plant in Calaca, Batangas, a joint venture with Trans-Asia Oil and Development Corp., the South Luzon Thermal Energy Corp.

For its renewable energy projects, AC Energy has the 52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte and the 81-MW wind farm in Pagudpud, Ilocos Norte through its affiliate North Luzon Renewable Energy Corp.

Another project under construction is the 600-MW expansion of the existing GN Power Mariveles plant in Bataan, where AC Energy has a 17-percent stake.

US-based GN Power, owned by Nauruan-American firm Power Partners Ltd. Co., has partnered with AC Energy in January 2014 to develop the expansion of the Bataan plant. Other investors include Sithe Global Power LLC, a company owned by investors of The BlackStone Group.