CBK Power Co.

active

In February 1999, CBK Power Co. was awarded a contract to build, rehabilitate and operate the Caliraya, Botocan and Kalayaan hydropower facilities. CBK Power agreed to expand the capacity of the plants from 349 MW to 728 MW. CBK would sell power to the Philippines National Power Corp under a 25-year power purchase agreement beginning in 2001. CBK was originally a joint venture between Industrial Metalurgicas Pescarmona Sociedad Anonima (IMPSA, Argentina, 50%) and Edison Mission Energy (USA, 50%). In January 2005, Edison sold its stake to IMPSA for US$104 million. In March 2005, IMPSA sold the combined 100% ownership to a Netherlands joint venture between Electric Power Development (J-Power, Japan, 50%) and Sumitomo Corp (Japan, 50%) for 23 billion yen (US$220.3 million). The project reached financial closure in February 2001, financed by US$340 million of long term loans and US$ 120 million equity. Edison Energy also received US$75 million insurance for its equity investment from OPIC. The sponsors paid US$70 million to the government in fees. In October 2003, with 97 percent of the total project completed, CBK Power said it planned to further expand capacity of the plants to a total of 769 megawatts.