Iligan City Diesel Plant I & II

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This 98 MW project consists of two bunker-C diesel fired power plants, Iligan City Diesel Plants I (58 MW) & II (40 MW). The project sponsor is Mindanao Power Corporation which is integrated by Alsons (Alcantara), Tomen, and Oxbow Power. In Apr. 2000, EGCO acquired Alsons' stake in the project. The Philippine government has provided loan guarantees and the IFC provided a financing package to Northern Mindanao Power Corporation. An additional $18.5 million in syndicated loans will be provided by both local and foreign banks. Foreign financing includes soft loans from the Finnish government and credit from Finnish suppliers. The contract for Iligan City Diesel Plant I was to terminate after ten years, when ownership transfers to the government, as it did in December 2003; the contract for Iligan City Diesel Plant II was to terminate after 12 years, in December 2005. Wartsila Corp. of Finland supplies diesel engines for the project. Around 2010, the local city government took over the plant from the state-run National Power Corporation. Subsequently, it tendered the plant in 2011 won by Alsons Consolidated, via its subsidiary Mapalad Power Corporation, which planned to renovate it for PHP 1.2 billion (US$30 million) and have it fully operational by April 2013. The Commission on Audit (COA) approved the sale of plant in October 2012. Power Sector Assets and Liabilities Management Corp. or PSALM, the state firm tasked to sell Napocor assets to private investors, said that what was important was a successful bidding. To be auctioned in March are the 114.7-megawatt Iligan I and II, 210- megawatt Navotas I and II power plants, the 100-megawatt Pantabangan hydroelectric plant, and the 12-megawatt Masiway power plant.